A Big Merger

Today American Airlines and US Airways is expected to sign the merger paperwork. With the signing of these documents, the new airline company will become the largest company within the industry. The company will retain the name American Airlines. This merger has been a long time coming. The two companies had to settle a lawsuit first on principles on the Sherman Anti-Trust Act in order to continue on with merger. The reason for the lawsuit was on the basis that customers believed that airline prices would increase because of the decreased number of options. The court ruled against the Plaintiff and American Airlines and US Airways can continue on with the merger. The author of the article American Airlines, US Airways to form Largest Air Carrier Monday stated that airline prices have not increased significantly since 2004 even with the United and Continental merger. The hope is that this merger will not cause airline prices to rise and that market will not suffer as a result of this merger.