A US federal judge said on Friday that the government’s lawsuit to block the proposed merger of American Airlines and US Airways will start on Nov. 25, a timetable favored by the airlines.
The US Department of Justice had wanted the trial to start in March next year, saying it needed more time to prepare for the complex case. The airlines said that such a long delay would threaten their merger.
US District Judge Colleen Kollar-Kotelly said in court on Friday that March was “too far off.”
The companies were close to completing a merger to create the world’s biggest airline, but the justice department and six states sued this month to block the deal. They said it would reduce competition and lead to higher prices for travelers. They said that the combined American-US Airways would be too dominant at Reagan National Airport outside Washington and on many routes around the country.
While the hearing before Kollar-Kotelly was mainly procedural, aimed at establishing timetables for reviewing documents and other preparations for trial, attorneys for the two sides did manage to preview their key arguments.
“This is a very dynamic industry,” said Richard Parker, an attorney representing US Airways.
The two airlines argue that their merger would increase competition by creating another big competitor to United Airlines and Delta Air Lines, which grew through recent mergers.
Parker also pointed to the presence of other competitors, including Southwest, which carries more passengers within the US than any airline.
“We will be talking to these airlines,” Parker said.
A review of other airlines’ documents and interviews of their executives will establish that competition in the industry is robust, he said.
However, the justice department’s lead attorney said that the proposed merger raised a number of competitive issues, including prices and the impact on some markets. The government will want to question airline executives about, for example, how fees are set for baggage and ticket changes, department attorney Mark Ryan said.
Ryan said it was impossible to accept the airlines’ assertion that a plan to cut costs would make the combined new carrier more efficient and save consumers money without the government being able to see details of the plan.
Parker cited the government’s previous approval of big-airline mergers, such as Northwest with Delta and United with Continental.
“By that standard, our merger passes muster by 10 miles,” he said.
Justice department lawyers have also pointed to recent record profits at both airlines — July’s profit was a one-month high at American parent AMR Corp, which has been cutting costs under bankruptcy protection — to argue that the companies do not need to merge to survive.
Both sides said in a court filing this week that they were open to a settlement that would avoid a trial, although each made comments suggesting that they were not close to agreement.
If the merger is blocked, AMR will have to rewrite its plan for emerging from bankruptcy protection. The merger is a key part of that plan.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
Foxconn Technology Group (富士康科技集團) and Luxshare Precision Industry Co (立訊精密) plan to add millions of gaming devices to Vietnam’s annual output, according to documents they submitted to local authorities, reinforcing the country’s role in the global supply of game consoles. Vietnam assembles a variety of electronic products destined for foreign markets, including smartphones, computers and tablets. Information on its production of consoles is not public, but Foxconn EV Energy & Component (Vietnam) Co, a subsidiary of the Taiwanese manufacturer, has capacity to produce up to 4 million gaming devices in a factory in Northern Vietnam, according to a company document from
RSS