Abstract
In the last several years, the U.S. airline industry has experienced both long-standing and novel challenges – fuel price volatility, limits to organic growth, pressures to expand globally, and slowing demand for air travel.In April 2012, US Airways announced a move to take over American Airlines, currently in bankruptcy proceedings. The merger would combine the fourth (American) and fifth (US Airways) largest airlines nationally, making US Airways-American the largest U.S. carrier.This is a project aimed to answer the following research questions:1. What is the role of federal authorities in reviewing merger proposals? 2. What is the impact of Bankruptcy of American Airlines?3. What are the defences against Anti-competitiveness of the merger?4. What is the effect of DOJ Anti-trust suit?
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