DALLAS (August 16, 2013)—Texas Attorney General Greg Abbott says he’s suing to block the giant merger between American Airlines and US Airways because comments by company executives show that they think consolidation will lead to higher prices.
Texas and five other states joined the U.S. Justice Department in suing this week to block the proposed merger.
Abbott's opposition is notable because Fort Worth-based American is a major employer in the state, and he's running for governor next year.
Abbott said he challenged the merger because top company executives said in internal e-mails and other comments that they think the merger and shrinking competition "will allow the airlines to pile even more bag fees, ticket change fees and increased fares on customers."
Abbott is running in the 2014 GOP gubernatorial primary and one of his opponents, Tom Pauken, thinks he should reconsider his opposition.
“It’s time for Greg to admit his mistake, pull back from this ill-conceived interference with the free market, end his legal partnership with Eric Holder, and join Texans in defending American Airlines, its employees, unions, and support vendors,” he said.
“They deserve better than to have their great company languish in bankruptcy courts for the next several years while a new plan is devised,” he said.