By JAVIER MANJARRESThis weeks “misguided” lawsuit filed by the Obama administration in an attempt to block the American Airlines-US Airways merger is nothing less than “misguided” and questionable, since even the pilots and other airline-related unions are in favor of the merger.
American Airlines is trying to come out of bankruptcy, but this lawsuit could prevent that from happening, simply because Attorney General Eric Holder believes that if hurts consumers. The lawsuit caused American’s stock to plummet, further causing more angst and loss of stock value for stockholders and everyday American investors.
“This transaction would result in consumers paying the price — in higher airfares, higher fees and fewer choices.” -Attorney General Eric Holder
Holder statement that this merger would raise airfare and fees, is in itself misguided, considering that airlines have been, and will probably continue to charge customers with baggage, change, and seat upgrade fees, to name a few.
An argument that attorneys, who will ultimately represent the two airlines, will probably make is that Holder and this Justice department didn’t take issue with the 2010 United Airlines and Continental merger, yet due so with the similar American Airlines US Airways venture“Like and share” the story below. Leave a comment