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Merger Decision Deadline Extended

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Source: Archived Content

Date: Mar 07, 2001

If you remember correctly, the Department of Justice was supposed to be making their final decision regarding the US Airways/United Airlines merger by April 2.  However, they have now requested additional information be provided that concerns a special deal between United and American Airlines.  Of course, United and US Airways, being ever so eager to get this deal passed, have agreed to submit these additional materials and extend the review period beyond April 2.

So now we must hold our breath beyond April 2 and into some future date for the outcome of this merger.  How to take this news?  More time can allow for more compromises to be made (like the American deal) and thus a better chance of the merge actually going through --or-- these additional materials and extra time will simply cause the D.O.J. to reject the merger altogether.  Regardless, extra time means more letters to the D.O.J. if you are are for or against the idea of the United/US Airways merger.

In addition, United and US Airways have agreed to a 21-day notification to the Justice Department before finalizing the merger to allow for review of information relating to this United-American Airlines agreement.

The special deal United made concerning American Airlines was made to help the Justice Department approve the United/US Airways merger.  It basically allows American to remain a competitor on certain hub routes where United and US Airways currently have a vast majority of the market.  Also, the deal allows American to jointly provide Shuttle service on routes between New York, Washington D.C., and Boston.

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