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Government fighting merger of US Airways and American Airlines

Readers in Fort Lauderdale may or may not be aware that there is more to two businesses joining forces than just the decision to merge. Along with careful planning and analysis, in some situations, such as with publically traded companies, the companies hoping to merge may have to seek approval from the federal government, as well as stockholders and governing boards.

According to reports, the federal government is taking steps to block the merger between two airline giants, American Airlines and US Airways. The two announced plans in February for the $11 billion merger that each hope will help them to recover from their financial difficulties. American Airlines reportedly filed for bankruptcy in 2011.

Although both businesses have recently seen improvements, they claim the situation is dyer and needs to be resolved sooner rather than later. Representatives for the carriers report that if the deal is not settled soon, the two sides may be forced to consider other options. They also discredit the government’s concerns that the business merger could adversely impact customers. According to reports, however, the federal government claims that the merger would reduce the options available to customers and likely drive up the cost of plane tickets.

Whether a small business merger or much larger scale unification, there are numerous legal intricacies involved with business mergers and acquisitions. For any size business, it can be helpful to have legal representation. A lawyer can help business executives and owners to negotiate the legal process to ensure the joining goes as smoothly as possible, as well as help with any other legal questions or concerns that may arise.

Source: CNN Money, “American, US Airways say merger at risk from trial delay”, Chris Isidore, August 29, 2013

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