Justice Department requests more information on AMR-US Airways merger

Posted Monday, Mar. 04, 2013 0 comments  Print Reprints
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The Justice Department has asked for more information as part of its review of the proposed American Airlines-US Airways merger.

The carriers said they will "respond promptly" to the request, received by the carriers on Monday, and are working with the Justice department in its review of the merger.

It's not unusual for the DOJ to make a second request as part of its anti-trust review under the Hart-Scott-Rodino Act for a merger the size of American and US Airways, which would create the largest airline in the world.

The merger still needs to be approved by the bankruptcy court and by US Airways shareholders. The carriers said they expect the merger to close in the third quarter of 2013.

Separately, AMR has modified its agreement with the regional carrier, Republic Airways, to include six fewer jets, according to a court filing made on Friday.

The Fort Worth-based airline has asked the court to approve the 12-year deal with Republic with the modifications. A hearing is set for March 12

"The modifications will reduce the cost of the transaction to American without jeopardizing American's ability to promptly secure the benefits of the Agreement or comprising the Debtors' schedule to phase the aircraft covered by the Agreement into operation as contemplated by the Debtors' business plan," the motion said.

The original agreement called for AMR to purchase 53 Embraer E-175 76-seat jets including six used aircraft. The new agreement removes AMR's purchase of the used jets. The 47 jets that will be purchased under the agreement and operated for AMR by Republic will be new aircraft.

"The removal of the six used aircraft should also increase the Debtors' overall EJet fleet fuel efficiency due to the fact that a higher percentage of the new 47 aircraft will be delivered with fuel technology enhancements," the motion said.

Andrea Ahles, 817-390-7631

Twitter: @Sky_Talk

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