How Much Would US Airways Group Inc (NYSE:LCC) Pay In Lawsuit?
US Airways Group Inc (NYSE:LCC), American Airlines and the United States Justice Department announced that they have now agreed upon a mediator who will settle the lawsuit that has been filed by the government against the merger that has been proposed by the 2 airlines.
Slated for trial?
If the settlement does not eventually go through, the 2 companies are all set for the trail that is scheduled to begin on 25 November. The Chief Executive Officers of US Airways Group Inc (NYSE:LCC) and American’s parent company, AMR Corp have stated that they are open to a settlement that will open up the path for the merger but are not willing to discuss any of the details pertaining to the negotiations.
In a court filing on Monday, both the airline companies and the U.S Justice Department said that they have agreed to the mediator that the U.S district-court judge in Washington has suggested. No other details were divulged by either of the companies.
They have also said that most of the information exchange has been completed. This is a normal part of the pre-trial. The U.S Federal Government and 6 states have obtained depositions from 19 different employees of both the airlines. Both the sides have also interviewed 9 other people, under oath. They said that these people were largely other airlines’ executives.
Support coming in?
Separately, 4 airports that are dominated by US Airways Group Inc (NYSE:LCC) and American – Charlotte Douglas International Airport, Philadelphia International Airport,
Dallas-Fort Worth International Airport and Phoenix Sky Harbor International have also been given the opportunity to file ‘friend-of-the-court’ briefs that will support the merger.
The Justice Department has filed the lawsuit in August saying that this deal will stifle competition and also hike consumer prices. On the other hand, the airlines are saying that if the merger goes through, they will be able to offer better competition to Delta and United which are the 2 largest airlines in the world.