Washington, DC - Paul Hastings LLP, a leading global law firm, announced today that it successfully advised Fort Worth, Texas-based AMR Corporation’s American Airlines Inc. in the settlement that resolved the antitrust action brought by the U.S. Department of Justice (DOJ), the States of Arizona, Florida, Michigan and Tennessee, the Commonwealths of Pennsylvania and Virginia, and the District of Columbia challenging the merger of AMR and US Airways Inc. The settlement allows American Airlines and US Airways to proceed with their planned $17 billion merger, which will create the world’s largest carrier by passenger volume.
The DOJ and several state attorneys generals sued to block the merger between American Airlines and US Airways in August 2013, alleging that the tie-up would hurt competition in key airports and increase ticket prices for consumers.
Under the terms of the settlement, the airlines will divest 52 slot pairs at Washington Reagan National Airport (DCA) and 17 slot pairs at New York LaGuardia Airport (LGA), as well as gates at Boston Logan International Airport, Chicago O'Hare International Airport, Dallas Love Field, Los Angeles International Airport, and Miami International Airport. Despite the divestitures, the combined airline is still expected to generate more than $1 billion in annual net synergies beginning in 2015, as was estimated when the merger was announced in February.
The Paul Hastings litigation team on this case included Washington DC-based partners MJ Moltenbrey, Scott M. Flicker, and Jeremy P. Evans as well as associates Samer M. Musallam, Timothy S. Longman and Robert E. Zuver.
Paul Hastings LLP is a leading global law firm with offices in Asia, Europe, and the United States. We provide innovative legal solutions to financial institutions and Fortune 500 companies. Please visit www.paulhastings.com for more information.