The Daily Parker

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States change their minds about USA/AMR merger

Last week the Justice Department and several states, including Texas and Florida, sued to stop the American—US Airways merger. Today a couple of them realized their error:

Political and business officials in Florida, Texas and North Carolina are asking the U.S. to reconsider its suit to block the proposed merger of American Airlines and U.S. Airways, saying the combined company would benefit their local economies.

Florida, Texas and North Carolina...are home to large hubs for both airlines.

American Airlines, which sought Chapter 11 protection in late 2011, is one of the largest private employers in Miami-Dade County. The carrier operates around 70 percent of the flights at the Miami airport, making it a dominant hub for flights to and from Latin America. Local officials have long promoted Miami as the “Gateway to the Americas.”

Yeah, I didn't understand that four of the six states who joined the Justice Department suits (these three plus Arizona) contain four of the five largest hubs of the two airlines—including the airlines' headquarters (American in Texas and US Airways in Arizona).

Even though I thought there would be a challenge to the merger, after I thought about how the challenge actually went down, it didn't make any sense. Obviously the people who depend on American and US Airways for their livelihoods agree.

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