US Airways’s (NYSE:LCC) proposed merger with AMR Corp.’s (AAMRQ.PK) American Airlines hit a snag when the U.S. Department of Justice sued to stop the move last month, saying that the deal would cut down too much on competition, violate antitrust laws, and raise the price of airfare for customers.
The two parties have said that they’re willing to come to some sort of agreement that would allow the merger to be completed but have argued about when a trial should begin. At the beginning of the month, a judge sided with the airlines in deciding that the trial would start in November, rather than the DoJ’s requested March date.
The airlines on Tuesday submitted filings to a federal court defending the merger, saying it would help them better compete with large airlines like Delta Air Lines (NYSE:DAL) and United Continental (NYSE:UAL), both of which were created through similar mergers and acquisitions within the airline industry. According to the documents, which were seen by Reuters, the airlines accused the Justice Department of ”ignoring the realities of the airline industry.”