Supreme Court justice denies stay in airline merger

WASHINGTON Sun Dec 8, 2013 12:16am EST

U.S. Airways jets are lined up at Reagan National Airport as an American Airlines jet takes off on the day U.S. Airways' stockholders are expected to vote on whether to approve the $11 billion merger of the two airlines effectively creating the world's largest carrier, in Washington July 12, 2013. REUTERS/Larry Downing

U.S. Airways jets are lined up at Reagan National Airport as an American Airlines jet takes off on the day U.S. Airways' stockholders are expected to vote on whether to approve the $11 billion merger of the two airlines effectively creating the world's largest carrier, in Washington July 12, 2013.

Credit: Reuters/Larry Downing

WASHINGTON (Reuters) - A U.S. Supreme Court justice on Saturday night denied a last-ditch effort by a group of consumers and travel agents to stop the merger of American Airlines and US Airways.

The application was denied by Justice Ruth Bader Ginsburg, the court's public information office said.

The combination of American's parent, AMR Corp, and US Airways Group would create the world's largest carrier and follow last month's resolution of antitrust objections by the U.S. Department of Justice.

In their appeal to the Supreme Court, plaintiffs led by California resident Carolyn Fjord warned that "irreparable injury" could be caused to the domestic airline industry if the deal goes ahead as planned. They fear the merger will drive air travel prices up and service down and make planes more crowded.

The merger is expected to be consummated before the opening of U.S. securities markets on Monday.

A federal judge on Friday rejected the previous attempt by the group to stop the merger.

If one high court justice denies a stay request, the same application can be made to another justice but such moves are rarely successful. Usually, if a request is made to a second justice it will be referred to the full court.

The case is Fjord v. AMR Corp et al, U.S. Supreme Court, No. 11-15463-SHL. The main bankruptcy case is in U.S. Bankruptcy Court, Southern District of New York, re: AMR Corp et al, 11-15463.

(Reporting by Ros Krasny and Lawrence Hurley; Editing by Peter Cooney)

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Comments (2)
Gokris wrote:
We must stop the cartelization of the airline industry and exploitation of the traveling public. This will give them license to steal form the company more money by way of golden parachute and dirty deals to line their pockets.

Dec 07, 2013 10:54pm EST  --  Report as abuse
ballsy wrote:
And I thought Liberals hated big business…

Dec 08, 2013 1:10pm EST  --  Report as abuse
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