Airline Stocks Drop On US Air-American Merger Suit

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The Department of Justice, six state attorneys general and the District of Columbia filed an antitrust suit against US Airways( LCC) and American Airlines' parent, AMR Corp., saying their proposed merger would lessen competition.
The pairing would create theworld's largest airline, worth about $11 billion, and cap a decade of airline mergers that's left about 85% of U.S. fliers with just four airlines tochoose from.
The announcement of the action came a week after the airlines announced they'd received clearance from the European Union for their merger.
Shares of US Airways were down 12% Tuesday amid a sector rout in the stock market todayUS Air and AMR, which is emerging from bankruptcy, announced the deal on Feb. 14, and antitrust regulators began a review process to determine whether further industry consolidation wouldboost ticket prices and hurt consumers.
U.S. Attorney General Eric Holder said in statement Tuesday, "This transaction would result in consumers paying the price — in higherairfares, higher fees and fewer choices."
The carriers have said the new company would have synergies that would enable it to keep costs down.
Southwest became one of the big four airlines with its 2011 acquisition of AirTran Airways. Among other recentpairings, Delta bought Northwest Airlines, and United Continental was formed by the merger of United and Continental in 2010.

ALP

Authority for Local Purchase: granted by the commissionerof Administration to an individual who has successfully completed all requirements established by the Materials Management Division.

ALTERNATE RESPONSE

A substitute response; an intentional substantive variation to a basic provision or clause of a solicitation by avendor.

AMENDMENT/CHANGE ORDER

A written modification to a contract or purchase order orother agreements.

APPROPRIATION

Sum of money from public funds set aside for a specific purpose.

ARO

After Receipt of Order.

AGREEMENT

AGREEMENT
A duly executed and legallybinding contract; the act of agreeing.

ADVERTISE

ADVERTISE
To make a public announcement of the intention to purchase goods, services or construction with the intention of increasing the response and enlarging the competition. The announcement must conformto the legal requirements imposed by established laws,rules, policies and procedures to inform the public.

ADDENDUM

ADDENDUM
An addition or supplement to a document; e.g., items or information added to a procurement document.

ACQUISITION

ACQUISITION
The act of acquiring goods and services (including construction) for the use of a governmental activity through purchase, rent, or lease. Includes the establishment of needs, description of requirements, selection of procurement method, selection of sources,solicitation of procurement, solicitation for offers, award of contract, financing, contraction administration, and related functions.