American Airlines and US Airways plan to fight on for merger

When the Justice Department joined six states and the District of Columbia in a lawsuit yesterday to block the proposed merger of American Airlines and US Airways, shippers may have good reason to feel ambivalent.

By ·

When the Justice Department joined six states and the District of Columbia in a lawsuit yesterday to block the proposed merger of American Airlines and US Airways, shippers may have good reason to feel ambivalent.

“It’s sort of ‘good news-bad news’ story,” said Brandon Fried, executive director of the Airforwarders Association.

On the one hand, shippers may be relieved that less consolidation will provide them with more route options. But at the same time, we have to be concerned with the sustainability of both carriers in the deal.”

Indeed, American Airlines had planned to emerge from bankruptcy in the next few weeks before teaming with US Airways and take on its larger competitors. Meanwhile, both airlines plan to fight the lawsuit.

Should the proposed merger eventually prevail, it would mean the creation of the world’s largest airline, making 70% of the U.S. market dependent on US Airways-American Airlines, United Airlines, Southwest Airlines, and Delta Airlines.

The European Commission and the judge overseeing the bankruptcy proceedings of AMR Corp. – the parent company of American Airlines – had already given the green light to the deal before the Justice Department weighed in with its objection.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Air Cargo · Air Freight · Logistics · All Topics
Latest Whitepaper
eBook: Why Multi-Tier Supplier Collaboration is More Important Now
Explore the benefits of supplier collaboration including sharing demand forecasts, faster reactions to demand or capacity changes and well-coordinated product launches.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...