Judge Sets Nov. 25 Date for American-US Airways Antitrust Trial

Judge Colleen Kollar-Kotelly of the United States District Court for the District of Columbia has set a Nov. 25, 2013 trial date for the U.S. Department of Justice (DOJ) Department to argue its antitrust case against the planned merger of American Airlines and US Airways.

The judge’s Aug. 30 decision came just days after the DOJ had asked for the trial to take place on March 3 in order to give it more time to prepare its case. "March 3, I think, is too far off,” the judge reportedly stated in court on Friday. “It needs to be a tighter, expedited schedule.”

For their part the two airlines had argued for a November 2013 trial date so they could complete their merger before the end of the year as planned. The DOJ had filed a lawsuit on Aug. 13 seeking to block the merger because it would raise air fares, reduce competition and decrease service around the country as the two airlines consolidate.

For their part American and US Airways, as well as the many airline analysts, were blindsided by DOJ’s move because they fully expected their merger deal would be approved given the DOJ’s previous approvals of the United-Continental and Delta-Northwest mergers.

The trial reportedly is expected to last about 10 days and include six witnesses for the airlines and a dozen or so for the federal government. A DOJ spokesman said the government will be ready to present its case on Nov. 25.

Doug Parker, CEO of US Airways, who is slated to lead the new American Airlines after the merger, and Tom Horton, current CEO of American, issued a joint statement saying they “are pleased the court has set a schedule that will enable us to resolve this litigation in a reasonable timeframe.”

Judge Kollar-Kotelly’s decision also comes a day after a U.S. bankruptcy judge on Thursday seemed to indicate he would approve American’s bankruptcy exit plan, which is focused on the planned merger with US Airways. If the DOJ succeeds in blocking the merger it would put American’s Chapter 11 restructuring back to square one and it would have to develop a new plan to emerge from bankruptcy on its own.

Source: Travel Pulse, http://www.travelpulse.com/judge-sets-nov-25-date-for-americanus-airways-antitrust-trial.html