American Airlines-U.S. Airways merger cleared by U.S. Supreme Court

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – The U.S. Supreme Court has denied the last hurdle for the merger of American Airlines and U.S. Airways, which is scheduled to be completed Monday.

The deal has been cleared of any legal hurdles, including an antitrust lawsuit filed by the Justice Department and a consumer group’s last-ditch challenge.

The airlines have settled the antitrust suit last month with the Justice Department, and Justice Ruth Bader Ginsburg rejected the request over the weekend by a group of 39 airline passengers who said that the merger would lead to reduced competition and will eventually hurt consumers.

The airlines said that the merger would offer more options for passengers.

American Airlines and U.S. Airways will likely sign the merger documents before trading begins on Monday. The new company’s name will be American Airlines and will be listed on the Nasdaq under the AAL symbol.

Customers are not expected to see immediate effects of the merger, as they can continue to book flights under the U.S. Airways and American Airlines brands. Frequent flier programs and ticketing are likely to be combined in 2014 at the earliest.

The airlines gave up some access at two major airports as part of its agreement with the Justice Department, which wanted to give opportunities to low-fare airlines.

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