A federal court set a March 3 trial date by request of the U.S. Justice Department to hear arguments on whether the department should stop a planned merger between US Airways and American Airlines. The airline companies had previously requested a 10-day trial that would begin on Nov. 12.
On Aug. 13, the Justice Department filed a lawsuit asking a federal court to order the two companies to abandon plans for a deal that would create the world's largest carrier. The department argued that the deal would reduce competition and lead to higher air fares.
The airline companies, on the other hand, argued that the deal was critical for American Airlines. The company had been operating under Chapter 11 protection since late 2011. They also argued that consumers would benefit from the merger by providing stiffer competition to Delta Air Lines Inc and United Continental.
The airline companies also noted that the merger agreement included a termination clause that would allow either carrier to scrap the deal as of Dec. 13. The Justice Department dismissed the importance of the Dec. 13 date, saying, "They can change this self-imposed deadline with the stroke of a pen."
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