Critics sue to block American-US Airways merger
Antitrust lawyer Joseph Alioto argues merger would lead to fewer flights, reduced service to small cities, and lower service quality
Opponents of the proposed merger of American Airlines and US Airways filed a lawsuit on Tuesday to block the deal, claiming it would hurt consumers by driving up airfares.
The suit was filed in federal district court in San Francisco by antitrust lawyer Joseph Alioto, on behalf of nearly 40 consumers.
Alioto argued that the merger would lead to fewer flights, reduced service to small cities, and a lower quality of service overall. He said the merger would leave four airlines — United, Delta, Southwest and the post-merger American — controlling about 90 per cent of the domestic airline industry, leading to higher prices.
American Airlines spokesman Mike Trevino called the lawsuit “baseless.” He said the merger would combine two airlines with little overlap in their routes, give customers more destinations, and is not expected to result in the closure of hub airports currently operated by American and US Airways.
US Airways spokesman Ed Stewart said the lawsuit lacked merit. “As is often the case with high-profile mergers, lawsuits containing baseless allegations such as these are filed and they are successfully defended,” he said.
Alioto’s law firm has filed lawsuits to block previous airline mergers, including Southwest Airlines Co.’s acquisition of AirTran Airways. In that case, a federal appeals court this year ordered Alioto’s firm to pay $67,495 of the carriers’ court costs, noting that the lawsuit was filed the day after their deal was completed.
