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Parsing The Case Against 'New American Airlines'

October 3, 2013
Donald Martin, PhD and Zsolt Macskasi, PhD

The U.S. Department of Justice (DOJ), along with six states and the District of Columbia filed suit in August to block the proposed $11 billion merger between American Airlines and US Airways. The proposed transaction would combine the fourth and fifth largest US air carriers, making the merged entity (“New American Airlines”) the largest domestic airline, and by some accounts the largest airline in the world.  After the government announced its opposition, the parties responded that they would mount a vigorous defense. The litigation is on a fast track; the trial is currently set to begin in November 2013.

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