This Day On The Street
Continue to site
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

Pressure Mounts on DOJ to Accept US Airways/American Merger

CHARLOTTE ( TheStreet) -- From many quarters, pressure is mounting on the U.S. Justice Department to drop its lawsuit opposing the proposed merger of US Airways (LCC) and American (AAMRQ).

On Wednesday, the mayors of seven hub cities -- Charlotte, Chicago, Dallas, Fort Worth, Miami, Philadelphia and Phoenix -- sent a letter to Attorney General Eric Holder, asking him "to reconsider this ill-conceived lawsuit." Most prominent among the mayors is Rahm Emanuel of Chicago, who was President Obama's chief of staff from 2008 to 2010.

Also Wednesday, Oklahoma Attorney General E. Scott Pruitt served notice that Oklahoma will file a "friend of the court" brief in support of the merger. "The Department of Justice should drop its lawsuit and allow the merger of American Airlines and US Airways to continue," Pruitt said in a press release. Tulsa, Okla., is the site of American's largest maintenance base.

Three weeks ago, Texas Attorney General Greg Abbott dropped his opposition to a merger, leaving six attorneys general joined with the Justice Department in support of the lawsuit and 45 attorneys general not in support of the lawsuit.

Last week, 68 Democratic members of Congress sent Obama a letter advocating for the merger. "Maybe someone at Justice may not have understood the impact (of stopping the merger) would have on union workers and on thousands of jobs," said Texas Congressman Marc Veasey, in an interview. "This is management and labor working together. Justice may not have had a good understanding that (its action) would create a duopoly."

Labor support for the merger has been unprecedented and may conceivably have an impact on a Democratic administration that has generally had labor support.

"What is so frustrating here is that DOJ doesn't seem to consider the attitude of employees, flight attendants in particular," said Laura Glading, president of the Association of Professional Flight Attendants and perhaps the most visible labor supporter of the merger.

"Shouldn't we be figured into the equation?" Glading asked in an interview. "Nobody considers the employees who made the sacrifices, did everything right, willing to change the company -- and now getting kicked in the teeth by a Democratic administration."
1 of 3

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
DAL $45.09 0.00%
AAPL $111.31 0.00%
FB $92.80 0.00%
GOOG $645.44 0.00%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs