NEW YORK ( TheStreet) -- Officials at US Airways (LCC) and American Airlines parent AMR Corp. (AAMRQ) say they are eager to take on the Department of Justice after the antitrust agency announced Aug. 13 it would try to block the carriers' planned $11 billion merger. The outcome of the case will likely depend on how Judge Colleen Kollar-Kotelly of the U.S. District Court in Washington views the airlines' claim that the stronger route network and improved financial health the merger would give them will translate into benefits for consumers.A big problem for the airlines is that the federal government's merger guidelines have a high bar for proving that those kinds of efficiencies will outweigh the harm of lost competition. The DOJ's Antitrust Division and the Federal Trade Commission have historically been wary of efficiency claims and a 2010 revision of the agencies' horizontal merger guidelines increased the level of proof that merging parties must demonstrate to show that benefits of merger will offset any damage to consumers.
The Deal: Gauging the Benefits of Airline Mergers
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.