This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

US Airways CEO: 'We Will Fight Them'

CHARLOTTE ( TheStreet) -- US Airways (LCC) and American (AAMRG) say they will fight the Justice Department's effort to block their merger.

"The DOJ has unfortunately just announced that it intends to try and block our proposed merger with American Airlines," said US Airways CEO Doug Parker, in a message to employees on Tuesday. "We are extremely disappointed in this action and believe the DOJ is wrong in its assessment. We will fight them."

"Other companies have found themselves in similar circumstances and gone on to successfully close their merger," Parker noted. He did say, however, that the merger will not close in the third quarter, as had been expected.

In a joint statement, the carriers said they would "mount a vigorous and strong defense" in U.S. District Court in the District of Columbia, where the Justice Department filed its lawsuit opposing the merger.

"We believe that the DOJ is wrong in its assessment of our merger. Integrating the complementary networks of American and US Airways to benefit passengers is the motivation for bringing these airlines together," the carriers said. "Blocking this pro-competitive merger will deny customers access to a broader airline network that gives them more choices. "

The deal was about to be approved in bankruptcy court: American has been operating under Chapter 11 of the bankruptcy code since November 2011. Approval would have triggered wage and benefit increases for US Airways and job security for American employees.

"This merger provides the best outcome for AMR's restructuring," the carriers said. "The widespread support from the employees and financial stakeholders of both airlines underscores the fact that this is the best path forward for both airlines and the customers and communities we serve."

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
LCC $0.00 0.00%
AAPL $112.76 0.00%
FB $89.43 0.00%
GOOG $618.25 0.00%
TSLA $249.06 0.00%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs