Executives for American Airlines and US Airways yesterday defended their planned merger against claims from consumer advocates who said that it could lead to higher fares, fewer regional routes and decreased competition, the Wall Street Journal reported today. The Senate Judiciary Committee hearing came a month after AMR Corp. and US Airways announced they would combine, a deal expected to create the world's largest airline and $1 billion in cost savings, with an expected market value of about $11 billion. The deal, which would bring AMR out of the bankruptcy case it filed in 2011, would be called American Airlines Group Inc. and is subject to bankruptcy court and regulatory approval. The Senate panel questioned airlines executives about fare increases, route cancellations to small- and midsize markets and how expanding globally would affect domestic flights. Douglas Parker, who is slated to be chief executive of the combined company, and Thomas Horton, CEO of AMR, told senators that routes wouldn't be disrupted, competition would be stronger, not eliminated, and it would allow them to expand globally.
