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
How Lean is your Lean Quality Program?
Avoid quality program bureaucracy that can sap logistics productivity and increase costs
Download Today!
From the September 2016 Issue
Indecision revolving around three complex supply chain elements—transportation, technology and organizational structure—finds many companies waiting to commit to a strategic path. However, waiting too long will only result in a competitive disadvantage that will be difficult to overcome in today’s fast-paced, global economy.
Time for Asia’s ports to rebuild
Is the freight recession upon us…again?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Supply Chain Best Practices: Visibility to In-Transit Inventory
During this webcast you'll learn on how various organizations have gained instant access to in-transit parcels and given access to this information to stakeholders.
Register Today!
EDITORS' PICKS
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...

Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....