US/AA Merger Trial Begins 11/25/13. Who Will Benefit?

AA and US voiced a fresh sense of optimism after a US judge granted their request for a speedy trial to determine whether the two carriers are allowed to form the world's largest airline.

US District Judge Colleen Kollar-Kotelly said a trial pitting the airlines against the US Justice Department and several states would begin on Monday, November 25.

The trial date is close to what the airlines wanted and months earlier than the Justice Department requested, meaning the government will need to work faster than it thought if it hopes to succeed in blocking the USD$11 billion merger.
"We are confident in our case and eager to get to court," the airlines said in a joint statement. "We are pleased to have a trial date that will enable us to resolve this litigation in a reasonable time frame."
Justice Department spokesman Peter Carr said in a statement: "We appreciate the court's careful consideration of the scheduling issues and will be ready to present our case."
The Justice Department sued on August 13 to block the deal, saying it would lead to higher prices for customers, while the companies said it would make them more competitive and strengthen the market.
Barring a settlement, which both sides said they are open to, lawyers will spend the next three months in intense preparation that will involve most of the US commercial airline industry.

Executives of American and US Air will be asked to sit for pre-trial depositions, lawyers said during a court hearing on Friday. Rivals including Delta Air Lines and Southwest Airlines will be asked to turn over documents related to how the industry sets fares and fees.

The Justice Department proposes depositions of 50 people in all, while the airlines said they want to depose 10 people. Lawyers said they could exchange millions of documents.
Kollar-Kotelly will appoint a special master to help the discovery process move along faster. She set a status conference for October 1.

The judge will try the case without a jury. It was expected to last 10 to 12 business days, lawyers for the two sides said. The Justice Department plans to call about 15 witnesses and the airlines plan to call approximately six.