Michigan has become the seventh state to join the Justice Department in opposing the proposed merger between American Airlines and US Airways.
The other six states to oppose the merger are Arizona, Florida, Pennsylvania, Tennessee, Texas and Virginia. Add Michigan to that list, and you begin to get a clear picture of the reason why states are lining up to oppose the combination. In a word, jobs. And in a second word, routes.
All of the states are home to hubs for major airlines — not all of them for American and US Airways, but all of them will be affected in some fashion if the merger takes place.
“The decision of the Attorney General of Michigan to join the Department of Justice does not diminish the strength of our case, nor our determination to complete this transaction and deliver the benefits of the combination to the customers and communities we serve,” said a joint statement from American Airlines and US Airways, according to Tulsa World.
“Both American Airlines and US Airways want the opportunity to compete together to enhance competition with the largest airlines in the U.S. — United, Delta and Southwest — and a number of fast-growing low-cost carriers. We look forward to our day in court.”
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