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US asks for March trial in airline merger challenge

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US Airways and American Airlines say a planned merger is critical for American Airlines, which has been operating under Chapter 11 protection since late 2011. Photo: Reuters
Reuters

The US Justice Department has asked a federal court to set a March 3 trial date to hear arguments over whether it should stop a planned merger between US Airways and American Airlines.

The companies had requested a 10-day trial that would begin on Nov. 12.

The Justice Department filed a lawsuit on August 13, asking a federal court to order the companies to abandon plans for a deal to create the world’s largest carrier.

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The department has argued that the deal would reduce competition and lead to higher air fares.

The companies have said that the deal was critical for American Airlines, which has been operating under Chapter 11 protection since late 2011. They also argue that consumers would benefit because the new, merged airline would give Delta Air Lines and United Continental stiffer competition.

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Companies generally push for an expedited trials in merger challenges. Holding a deal together for months puts a strain on the parties because they are essentially in limbo, unable to merge and hampered in making independent long-range plans.

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