On Tuesday, the US Department of Justice had lost its chance to delay the merger of US Airways Group Inc and American Airlines. The US Department of Justice along with several states had filed a lawsuit against the US Airways-American Airlines merger, claiming it would only stiffen competition in the industry and increase airfare as the collaboration would create the world's biggest airline.
Meanwhile, Texas Attorney General Greg Abbott said his state was dropping out of the lawsuit that sought to block the merger. The withdrawal of Texas from the suit filed by the Justice Department had brightened the perceptions that the deal would push through. In fact, share prices for both airline companies jumped higher at the close of trade.
US Airways shares jumped 3.9% at USD19.69 at the trading close on Tuesday. Meanwhile AMR closed higher to 8.3% at USD4.45.
Aside from Texas, other states including Arizona, Michigan, Pennsylvania, Florida, Tennessee and Virginia had joined the US Justice Department in the lawsuit. The District of Columbia was also not in favor of the deal.
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