Tom Horne, Arizona AG, Fights to Block Airline Merger, Joins Lawsuit With DOJ, Other AGs

Categories: Horne Dog

horne-tom-skidmore.jpg
Image: Gage Skidmore via Flickr
Tom Horne has a joined a fight with the U.S. Department of Justice and other attorneys general to block a planned merger by US Airways and American Airlines.
The planned merger between American Airlines and US Airways won't get off the ground if Arizona Attorney General Tom Horne gets his way.

Horne has joined a coalition of five other states, Washington DC and the US Department of Justice in a lawsuit that labels the airlines' plan to become the world's largest single carrier as "anticompetitive."

us-airways-american-logos.jpg
Image: US Airways
What Horne doesn't say in his news release about the fight is that, beyond the general problem of increased fares for everyone, a disaster looms locally with the likely uprooting of a major corporate headquarters.

Last year, Arizona-based economist Elliot Pollock estimated that a move to Texas by most of the current US Airways administration -- now based in Tempe -- could cost Arizona thousands of jobs and tens of millions in tax revenue.

Yet Horne's playing coy, echoing the anti-monopolistic concerns of the Justice Department, which has been investigating the planned merger for weeks. Horne released a statement about the lawsuit saying, "Competition is crucial for a vital economy . . . As the state's chief legal officer, it is my duty to maintain competitive markets in Arizona for the benefit of our citizens. This merger is anti-competitive, and Arizona consumers will be forced to pay millions of dollars more each year in increased airfare if it goes through as planned."

Those millions are a fraction of what Pollack's talking about in terms of a local hit, though.

Horne's trying to protect the province. Not that we can blame him -- but we find it interesting when Republicans whom you might think would normally support free-market principles are fighting a merger that would still leave competition in the field (though not much, according to Horne's release, which you can read by clicking here).



Sponsor Content

My Voice Nation Help
13 comments
bushmanaz
bushmanaz

I just left Phoenix for St Louis, but I have been traveling to Dallas for the last year. In case you missed it the Texas AG dropped out of the suit. He went to American and got all kinds of concessions from American. They will keep Fort Worth as the HQ, they will not have big layoffs and so forth (you can look it up). So where does that leave AG Horne? He blindly followed TX into the suit and now he has no concessions from USAir to keep jobs in AZ. It's good of him to lend his voice to TX to help keep jobs in TX. I'd like to see someone interview Horne about the recent turn of events.

WhoKnows
WhoKnows topcommenter

If I understand this, the GOP AGs of 6 read states are banding together with the DOJ to add more government control and regs on the airline industry.


So these Red State AGs must be in favor of bigger government!  How interesting!

arizonaeagletarian
arizonaeagletarian

Well, Jan found the words necessary to justify Medicaid restoration, and normally free-market types have found the words to fight electric utility deregulation, so why not Horne finding it in himself to actually do something good for Arizona for a change?

Jeff Kee
Jeff Kee

Less market competition will give us less choice and higher prices. Needs to be more enforced monopoly laws.

Bill Wanick
Bill Wanick

sure, id like to think i could merge my company with another and NOT have some people tell ME i cant... stupid question

Bob Rebsamen
Bob Rebsamen

Yes, it is a free market, the airlines are under enough government DOT, FAA, and TSA regulation through the taxes paid on a RT ticket.

Chris Hedges
Chris Hedges

For personal reasons no, only because USAirways and American are the only two that offer direct flights to/from PHX/DFW where by far I fly between the most. Without one competing with the other, you bet your ass those fares are gonna go up in price.

Denise Mason
Denise Mason

No. We allowed this with several other companies that should have been blocked and it drives rates way up because of a monopoly. Look what happened to our networks. You think you have choices? There are only 5 corporations that own and control everything that you see, hear and read. It used to be that you were not allowed to own more than 5 of any media outlets. Meaning, you could have 1 news channel, 1 newspaper and 3 magazines. And the cost of advertising is huge, why, because there is no competition.

Malinda Santiago
Malinda Santiago

Yes, why not? They are their own business and no one should be allowed to stop them.

Rico Stackz
Rico Stackz

Yes they should be allowed to merge. This is mainly a political move to block. They believe it will create a monopoly, but I think it will also give young airline business a chance to ride up and compete and undercut the giant companies. Southwest Airlines and a few other smaller ones are doing very well.

Joe Rollins
Joe Rollins

Will airline ticket prices come down? If so, let them do it.

Now Trending

Phoenix Concert Tickets

Around The Web

From the Vault

 

Loading...