Texas AG's Office: American Merger Could Cut Service At Smaller Texas Airports

Texas is one of six states joining the Justice Department in its suit to block the merger of U.S. Airways and Fort Worth-based American Airlines.

In a prepared statement, the Texas Attorney General’s office argued that if U.S. Airways gained control of American Airlines, the result could be reduced service at Texas’ smaller airports. Many such airports are now served exclusively by American Airlines and American Eagle flights.

“I think in terms of the probability of success, the DoJ [U.S. Department of Justice] complaint is very strong.”

Darren Bush teaches antitrust law at the University of Houston Law Center.

“It seems to be aided quite a bit by statements by the CEOs of the companies, e-mail exchanges in U.S. Airways, that suggests that the consolidation in the industry might allow for collusion.

Both the state attorney general’s office and the Justice Department claim that, if the merger goes forward, it would concentrate more than 80% of domestic travel under four airlines. 

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...