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US Airways American Airlines Complaint

US Airways American Airlines Complaint

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Published by colettecope1
Pennsylvania is joining five states and the District of Columbia in a lawsuit to block the merger of American Airlines and US Airways. View the complaint here.
Pennsylvania is joining five states and the District of Columbia in a lawsuit to block the merger of American Airlines and US Airways. View the complaint here.

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Published by: colettecope1 on Aug 13, 2013
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08/22/2013

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UNITED STATES DISTRICT COURTFOR THE DISTRICT OF COLUMBIA
 UNITED STATES OF AMERICA450 Fifth Street Northwest, Suite 8000Washington, DC 20530STATE OF ARIZONA1275 West WashingtonPhoenix, AZ 85007DISTRICT OF COLUMBIA441 Fourth Street Northwest, Suite 600 SouthWashington, DC 20001STATE OF FLORIDAPL-01, The CapitolTallahassee, FL 32399COMMONWEALTH OF PENNSYLVANIA14th Floor, Strawberry SquareHarrisburg, PA 17120STATE OF TENNESSEE500 Charlotte Avenue Nashville, TN 37202STATE OF TEXAS300 W.15th Street, 7th Floor Austin, TX 78701and 
Case 1:13-cv-01236 Document 1 Filed 08/13/13 Page 1 of 56
 
2COMMONWEALTH OF VIRGINIA900 East Main StreetRichmond, VA 23219
Plaintiffs
,v.US AIRWAYS GROUP, INC.111 W. Rio Salado ParkwayTempe, AZ 85281and AMR CORPORATION4333 Amon Carter Boulevard Fort Worth, TX 76155
 Defendants
.
COMPLAINT
 The United States of America, acting under the direction of the Attorney General of theUnited States, and the States of Arizona, Florida, Tennessee, Texas, the Commonwealths of Pennsylvania and Virginia, and the District of Columbia (“Plaintiff States”), acting by and through their respective Attorneys General, bring this civil action under federal antitrust law toenjoin the planned merger of two of the nation’s five major airlines, US Airways Group, Inc.(“US Airways”) and AMR Corporation (“American”), and to obtain equitable and other relief asappropriate.
Case 1:13-cv-01236 Document 1 Filed 08/13/13 Page 2 of 56
 
3
I. INTRODUCTION
1.
 
Millions of passengers depend on the airline industry to travel quickly, efficiently, and safely between various cities in the United States and throughout the world. Since 1978, thenation has relied on competition among airlines to promote affordability, innovation, and serviceand quality improvements. In recent years, however, the major airlines have, in tandem, raised fares, imposed new and higher fees, and reduced service. Competition has diminished and consumers have paid a heavy price. This merger—by creating the world’s largest airline— would, in the words of US Airways’ management, “finish[ ] industry evolution.” It would reduce the number of major domestic airlines from five to four, and the number of “legacy”airlines—today, Delta, United, American, and US Airways—from four to three. In so doing, itthreatens substantial harm to consumers. Because of the size of the airline industry, if thismerger were approved, even a small increase in the price of airline tickets, checked bags, or flight change fees would cause hundreds of millions of dollars of harm to American consumersannually.2.
 
American and US Airways compete directly on thousands of heavily traveled nonstopand connecting routes. Millions of passengers benefit each year from head-to-head competitionthat this merger would eliminate. With less competition, airlines can cut service and raise priceswith less fear of competitive responses from rivals.3.
 
This merger will leave three very similar legacy airlines—Delta, United, and the newAmerican—that past experience shows increasingly prefer tacit coordination over full-throated competition. By further reducing the number of legacy airlines and aligning the economicincentives of those that remain, the merger of US Airways and American would make it easier for the remaining airlines to cooperate, rather than compete, on price and service. That enhanced 
Case 1:13-cv-01236 Document 1 Filed 08/13/13 Page 3 of 56

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