U.S.

Supreme Court declines to hear request to stay US Airways-American merger

The decision paves the way for the two airlines to become the world's largest beginning Monday

A group of consumers and travel agents filed a last-ditch petition Saturday to the Supreme Court to stop American Airlines and U.S. Airways from merging.
AP Photo/Susan Walsh

Late Saturday night U.S. Supreme Court Justice Ruth Bader Ginsburg declined to hear a challenge brought by a group of consumers and travel agents that sought to stop American Airlines and US Airways from merging.

The group filed a last-ditch petition to stop the merger, arguing that it would drive air travel prices up and service standards down and make planes more crowded.

Justice Ginsburg did not issue an opinion.

The combination of American's parent, AMR Corp., and U.S. Airways Group would create the world's largest carrier and follow last month's resolution of antitrust objections by the Department of Justice.

In their appeal to the Supreme Court, plaintiffs led by California resident Carolyn Fjord warned that "irreparable injury" could be caused to the domestic airline industry if the deal goes ahead as planned.

The merger is expected to be consummated before the opening of financial markets on Monday.

"The question of the legality of the proposed merger ... following on the whirlwind of mammoth mergers in the airline industry in the last five years, is serious enough to warrant a stay of the orders which permit the consummation of the merger, pending an appeal," the plaintiffs said in a 28-page filing.

A federal judge on Friday rejected the group's previous attempt to stop the merger.

In his decision, U.S. Circuit Judge Raymond J. Lohier said that the court “discerns no record evidence that Appellants will suffer irreparable harm in the absence of a stay pending appeal.”

After the ruling, US Airways spokesman Ed Stewart said, “We look forward to closing the merger and becoming the new American Airlines on Dec. 9.” 

Al Jazeera and wire services

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