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Old 11-04-2013 | 08:37 AM
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satpak77
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U.S. Justice Dept hopes to settle American, US Airways fight - Yahoo Finance

WASHINGTON, Nov 4 (Reuters) - The U.S. Justice Department is looking for divestitures at key airports throughout the United States as a condition for dropping a lawsuit aimed at stopping the proposed merger of US Airways and American Airlines , U.S. Attorney General Eric Holder said on Monday.

Holder said that talks with the companies, whose merger would create the world's largest airline, were ongoing and that he hoped for an agreement before a trial begins on Nov. 25.

"We are fully prepared to take this case to trial" if settlement is not reached, Holder said.

The Justice Department's complaint filed against the deal discussed the combined airline's potential clout at Washington's Ronald Reagan National Airport as well as concerns about a large number of other city pairings.
My take:

DOJ wants to settle but LCC/AMR is going to have to "give something" before they settle. DOJ is saying "we are ready for trial" as standard lingo, to look like the tough regulator.

The smart response is give up some gates, throw DOJ a few bones, and everybody is happy. No trial, merger approved.

Cooperate, Graduate
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