DOJ Seeks Bigger Concessions from US Airways (LCC), AMR Corp (AAMRQ)

November 4, 2013 11:53 AM EST
Get Alerts LCC Hot Sheet
Price: $22.55 --0%

Overall Analyst Rating:
    BUY (= Flat)

Trade Now! 
Join SI Premium – FREE
US Airways Group, Inc. (NYSE: LCC) and AMR Corp. (OTCBB: AAMRQ) are active Monday as reports have the U.S. Department of Justice looking for broader concessions from the two in order to get approval for the proposed merger.

The WSJ said today that the U.S. DoJ thinks a merger of US Air and AMR would harm consumers by reducing air service while increasing fares. The agency listed about 1,000 routes that would suffer if the merger were to go through in its current form.

The DoJ is seeking divestitures at key airports throughout the U.S., including Reagan National in Washington D.C., while also adjusting presence at La Guardia, JFK, and O'Hare.

US Airways might also need to divest some of its international flight permissions.

Shares of US Airways and AMR Corp. are positive Monday. Trial between the two sides is slated to begin November 25th.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Insiders' Blog, Litigation, Mergers and Acquisitions

Related Entities

Definitive Agreement