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July 01, 2013

Texas attorney general joins DOJ investigation into American-US Airways merger

Texas attorney general, Greg Abbott, is leading a group of state attorney generals that has joined the U.S. Justice Department's investigation into the proposed merger of American Airlines and US Airways.

According to this Reuters report, nineteen attorney generals have joined the probe as they are concerned about losing service or possibly a hub when the two carriers combine.

On Monday evening, a spokesman with Abbott's office confirmed that Texas is leading the review but could not comment further on the investigation.

The DOJ is examining possible anti-trust issues related to the merger which will create the largest airline in the world. Some senators and congressmen have expressed concern about the number of slots the combined carrier would have at Washington D.C.'s Reagan National airport.

The merger is expected to close in September but still needs government regulatory approval. The shareholders of US Airways are expected to vote on the merger at their shareholder meeting on July 12.

At a Congressional hearing earlier this month, US Airways chief executive Doug Parker testified that he does not believe the combined company should have to divest slots at Reagan and if it did, it could mean fewer flights to small and medium-sized cities.

-Andrea Ahles


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