September 2022, Virtual
September 29 2022, Virtual
Now in its 27th year, the Business Travel Awards
American Airlines has admitted it has no back-up plan if US authorities block its $11 billion merger with US Airways.
The US Department of Justice last week threw the merger plan into doubt when it launched a lawsuit against the tie-up which would create the biggest airline in the world by passenger numbers.
American Airlines’ general counsel Gary Kennedy told the Dallas Morning News that there was no “plan B” if the merger was blocked.
"We are focusing all of our efforts and energies on winning this lawsuit," said Kennedy."There's no Plan B.”
The DOJ has argued in a submission to a federal court in Washington that the deal breached anti-trust laws because it would lead to less competition in the industry.
Both American and US Airways have vowed to fight against the DOJ lawsuit and claimed that the merger would promote competition.
American had hoped to use the completion of the merger to emerge from chapter 11 bankruptcy protection, which the company entered in November 2011.
The two airlines want the court case to begin in November but the DOJ has proposed starting proceedings in February 2014. The case is expected to take around 10 days when it is finally heard.
Kennedy also suggested there was little prospect of the two airlines coming to a deal with the DOJ.
“The DOJ has shown no interest in settlement discussions,” he added.