By Keith Laing
The Justice Department is contesting American's proposed merger with US Airways because it argues the combination of the companies would violate federal antitrust laws.
When the airlines announced their $11 billion merger agreement, they argued that their route structures would be complimentary because they said they only had 12 non-stop flights that were similar. The Justice Department filed a lawsuit last week with six state attorneys general arguing that the airlines' similar connecting flights should also be counted, which they said would push the number of overlapping flights closer to more than 700.
Kennedy told the paper that American was "surprised" at the DOJ's decision to intervene in the company's proposed merger with US Air.
“We knew Justice had some issues or views on the transaction, but we were still surprised and disappointed,” he said.
Kennedy added that he was also taken aback by the fact that the lawsuit was joined by Texas Attorney General Greg Abbott (R), who is currently running to replace outgoing Texas Gov. Rick Perry (R).
“I was totally surprised and disappointed with the Texas AG,” he said. “We are a Texas-based company and the new, merged company will be stronger and more influential and still based right here in Texas. I do not understand his position on this at all.”