Public merger of AMR and US Airways will create largest carrier

Public merger of AMR and US Airways will create largest carrier

On Behalf of | Jul 5, 2013 | Uncategorized |

In the business world, there are mergers and similar transactions that take place on an almost daily basis. For business owners in Baton Rouge, there are concerns to keep in mind throughout complex business acquisitions. There are regulatory concerns, concerns as a competitor, and many other things to keep an eye on when pursuing business goals.

A merger between AMR and US Airways in the process of taking place, and being reviewed by the U.S. Department of Justice. This merger will create the world’s largest air carrier that will be worth $11 billion. As is typical with a merger that size, the Department of Justice is looking into it to ensure it is complying with rules and regulations.

This merger between these two airlines will create a dominant carrier for smaller airlines to compete against. Some have raised concerns about this new carrier dominating Reagan National Airport in Washington D.C. One factor the Department of Justice is considering is stipulating the new carrier’s divestiture from some slots at that airport before approving the merger.

While it appears the merger between AMR and US Airways will proceed as planned, not all contracts go as smoothly. Although not every business will face the regulatory scrutiny from the Department of Justice, each business owner still has to comply with the laws set forth by the government. And while not necessarily on this scale, business owners across the country face competition of their own.

Maneuvering the world of business litigation can be tricky. Having legal counsel can help ensure that one’s business runs as smoothly as possible.

Source: Fox Business, “Source: US Airways, AMR Merger on Track Despite DOJ Depositions,” Jennifer Booten, June 28, 2013