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November 15, 2013

Justice Department Settles Challenge to AMR/US Airways Merger

Arnold & Porter Advisory

On November 12, 2013, the Antitrust Division of the U.S. Department of Justice, joined by six states and the District of Columbia, announced a Settlement to end its challenge to the proposed merger of AMR Corporation (parent company of American Airlines) with US Airways Group, Inc. (parent company of US Airways). Proposed Final Judgment, United States v. U.S. Airways Group, Inc., 1:13-cv-01236 (D.D.C. Nov. 12, 2013). The suit claimed that the combined airline would: (i) further consolidate the markets for "scheduled air passenger service between cities" and "takeoff and landing slots at Reagan National Airport"; (ii) facilitate price and service cooperation instead of competition; and (iii) eliminate existing market discipline mechanisms that hold price increases in check. See Complaint, United States v. U.S. Airways Group, Inc., 1:13-cv-01236 (D.D.C. Aug. 13, 2013).

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