Arab Today, arab today us moves to block us airwaysamerican airlines merger
Last Updated : GMT 22:30:09
Arab Today, arab today
Arab Today, arab today

Justice Department says merger would hike ticket prices

US moves to block US Airways-American Airlines merger

Arab Today, arab today

Arab Today, arab today US moves to block US Airways-American Airlines merger

American Airlines planes are seen on the tarmac at the Miami International Airport
London – Arab Today

American Airlines planes are seen on the tarmac at the Miami International Airport London – Arab Today The US Justice Department and several states sued Tuesday to block the $11 billion merger between American Airlines and US Airways, saying it would cut competition and push fares significantly higher. It said the two could well stand on their own in the business and that combining them would hike ticket prices in an industry already rife with quiet cooperation on fares.
The move effectively dragged to a halt the long-pending merger to create the world\'s largest airline, as American Airlines and its parent AMR Corp. exit bankruptcy restructuring.
The merger \"would substantially lessen competition for commercial air travel in local markets throughout the United States and result in passengers paying higher airfares and receiving less service,\" the Justice Department said in a statement.
\"Airline travel is vital to millions of American consumers who fly regularly for either business or pleasure,\" Attorney General Eric Holder said in a statement.
 \"This transaction would result in consumers paying the price - in higher airfares, higher fees and fewer choices.\"
The suit was joined by attorney generals of six states and Washington DC.
It said the two airlines compete directly on more than 1,000 routes, and the merger would remove that competition.
\"Eliminating this head-to-head competition would give the merged airline the incentive and ability to raise airfares,\" the department said.
It also said that the US airline industry was already \"highly concentrated\" and that after the merger four airlines would control more than 80 percent of the commercial air travel market.
The merger, the suit said, would leave three \"legacy\" airlines -- Delta, United and the new American Airlines -- \"that past experience shows increasingly prefer tacit coordination over full-throated competition.\"
That would likely not be affected by competition from the smaller JetBlue and Southwest, it said.
The suit argued that US Airways\' own executives have publicly favored industry consolidation as a way to drive up fares.
The department also argued that the merger is unnecessary for American: that the carrier had a viable standalone plan, adding new routs and aircraft, as it emerged from bankruptcy reorganization.
\"American\'s standalone plan would have bucked current industry trends toward capacity reductions and less competition,\" the suit said.
It quotes US Airways as calling American\'s expansion plan \"industry destabilizing\".
\"There is no reason to accept the likely anticompetitive consequences of this merger. Both airlines are confident they can and will compete effectively as standalone companies,\" the suit said.
The suit came just a week after the European Union\'s competition regulator approved the merger, which would mainly affect transatlantic services and not domestic European services.
The EU set the condition that the merged company open up for competition the Philadelphia-London route, because otherwise the merged airlines would gain a de facto monopoly through a joint venture with British Airways and Iberia.
Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us moves to block us airwaysamerican airlines merger Arab Today, arab today us moves to block us airwaysamerican airlines merger

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us moves to block us airwaysamerican airlines merger Arab Today, arab today us moves to block us airwaysamerican airlines merger

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today unveils Joon - the 'millenials' airline

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iran tests new medium-range missile

GMT 21:24 2017 Saturday ,23 September

Iran tests new medium-range missile
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 08:39 2017 Friday ,22 September

New Hurdles as Republicans Rush

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday