Economist Criticizes Airline Merger Lawsuit

August 14, 2013

Arizona State University W.P. Carey School Economics Professor Robert Mittelstaedt is criticizing Arizona Attorney General Tom Horne’s decision to join the United States Department of Justice in stopping the merger of Tempe-based US Airways and American Airlines.

They say the merger would result in fare and fee hikes from reduced competition. But Mittelstaedt isn’t buying it.

“They’re going to have a hard time competing against a very big Delta-Northwest and a very big United Continental,” Mittelstaedt said.

He expects the two airlines to reach an agreement with the feds that will satisfy their objections to the merger.

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