Military
Antitrust Concerns Over U.S. Airways and AMR Merger
Published:
Last Updated:
Federal approval of the potential merger between U.S. Airways Group Inc. (NYSE: LCC) and bankrupt AMR likely will hinge on what the carriers are willing to give up. Antitrust experts believe that the new company will have to abandon some routes where the marriage would make the new airline completely dominant.
To preserve competition, antitrust experts say, the Justice Department is likely to ask for divestitures in US Airways’ hub at Washington’s Reagan National and Charlotte, N.C., and AMR’s hub in Dallas. Outside these areas, the carriers fly different routes for the most part.
“Overlapping routes are bad, and connecting routes are good,” said Herbert Hovenkamp, who teaches antitrust at the University of Iowa College of Law.
“If you put these two airlines on a map you’re going to see a lot of complementary routes but you’re not going to see very many where the two of them fly on the same route,” he added.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
