A group of 19 attorneys general, led by Texas, has joined a U.S. Justice Department probe of a planned merger of American Airlines Inc. and US Airways Group Inc., Reuters reported yesterday. Some of the states involved worry that they will lose a hub because of the planned transaction, which would create the world's largest airline, while others are concerned about service cutbacks to smaller cities. US Airways announced on February 14 that it planned to merge with American, which is emerging from bankruptcy, in an $11 billion stock deal. The companies hope to wrap up the merger by the end of September. The state attorneys general are working with the Justice and Transportation Departments, both of which must approve the deal. Texas is leading the state effort, with Arkansas, Arizona, California, Washington, D.C., Florida, Iowa, Illinois, Minnesota, Mississippi, Nebraska, New York, Oklahoma, Pennsylvania, South Carolina, Tennessee, Virginia, Wisconsin and West Virginia also being involved in the investigation.
