US Airways Group, Inc. (LCC): A Merger Lawsuit in the Airline Industry

Strong confidence

Despite the lawsuit and opposition from certain consumer advocates, both US Airways Group, Inc. (NYSE:LCC) and American Airlines appear confident in the merger’s completion. With a projection to close it in the third quarter, the carriers have already begun a new branding strategy alongside the progress they made in setting up contracts around the time the takeover was announced. Most analysts also appear confident in the merger being approved, although some still leave open the possibility that the carriers would be forced to forfeit some slots at Washington National. If the merger is completed as expected, the new American will take on a host of new challenges of integrating two large scale airlines. But for industry followers, it will likely be the last of the legacy carrier mergers. Then it will be time to watch the consolidated industry play out.

The article A Merger Lawsuit in the Airline Industry originally appeared on Fool.com and is written by Alexander MacLennan.

Alexander MacLennan owns shares of Air Canada and Delta Air Lines. He also owns the following options: long $22 Jan 2015 Delta calls, long $25 Jan 2015 Delta calls, long $30 Jan 2015 Delta calls, long $17 Jan 2015 US Airways calls. This article is not an endorsement to buy or sell any security and does not constitute professional investment advice. Always do your own due diligence before buying or selling any security. The Motley Fool has no position in any of the stocks mentioned. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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