This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Deal: DOJ Pushes Back Against Call for Speedy Airline Trial

Stocks in this article: LCC AAMRQ

WASHINGTON ( The Deal) -- The Department of Justice on Tuesday, Aug. 27, urged a federal judge to ground the request of US Airways (LCC) and American Airlines (AAMRQ) for a quick trial to decide the federal government's attempt to stop the air carriers' $11 billion merger.

The DOJ, joined by attorneys general from six states and the District of Columbia, urged Judge Colleen Kollar-Kotelly of the U.S. District Court in Washington to begin the trial on March 3, 2014, rather than Nov. 12 as the airlines requested last week.

"Defendants' attempt to rush this matter to a trial on the merits in fewer than 75 days following the initial scheduling conference creates the very real risk that ... one of the largest merger challenges ever adjudicated will be resolved on less than an appropriate record," the government said in court papers.

The airlines must respond to the DOJ's proposed timeline by the end of the day Wednesday. Judge Kollar-Kotelly will hold a scheduling conference to set the trial date and briefing schedule Friday morning.

The DOJ's trial team, led by antitrust division litigation director Mark Ryan, dismissed the airlines' contention that a quick trial is necessary in order to provide clarity to the ongoing effort to bring American's parent, AMR Corp., out of bankruptcy. AMR's current reorganization plan is based on being acquired by US Air.

"American's ongoing bankruptcy proceedings do not justify trying this case on an incomplete record," the DOJ said. Government attorneys noted that AMR is capable of emerging from Chapter 11 in solid financial shape without being acquired. "American's restructuring efforts have been extraordinarily successful and have positioned the company to compete as a strong and vibrant standalone firm," the DOJ said. The government stressed that American reported record profits in the second quarter of this year and on Monday announced that July 2013 was AMR's most profitable month in company history.

The government also disputed the companies' contention that beginning the trial well into the first quarter of 2014 would constitute an unprecedented delay in bringing a merger case to trial.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,088.36 +58.15 0.32%
S&P 500 2,091.38 +9.50 0.46%
NASDAQ 4,809.8050 +36.3330 0.76%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs