AIRLINES - U.S. Justice Department Puts Kibosh on Merger

So the expectation is that DoJ had approved airline mergers in the past so they would approve this one?  DUH, there is no limit to mergers?  We can expect mergers until there is only one, really?  Not hardly.

"Justice Department: Anti-Competitive Airline Merger Will Make Flight Prices Soar" PBS Newshour 8/13/2013

Excerpt

JEFFREY BROWN (Newshour):  It was all smiles and backslaps six months ago as the airlines' CEOs announced plans to merge.

DOUG PARKER, U.S. Airways:  This really is about taking two airlines, putting them together and providing better service to customers.  Our view is, it increases competition; it doesn't decrease competition.

JEFFREY BROWN:  But, today, the Justice Department said it will hurt competition.  Justice and attorneys general from six states plus the District of Columbia filed suit in federal court to ground the $11 billion merger at the 11th hour.  The department said such a merger would leave just three so-called legacy carriers and make flying more expensive.

The new American would have been the world's largest carrier, dominating some U.S. domestic markets.  At Washington's Reagan National Airport, it would control 69 percent of the space and 63 percent of the routes.

In a conference call with reporters, Assistant Attorney General William Baer said the merger would -- quote -- "substantially lessen competition."  He labeled the deal "pretty messed up.  It's bad for consumers."