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Statement from Attorney General Tom Horne Regarding Texas AG Settlement with U.S. Airways and American Airlines Merger: “Arizona Does Not Intend to Settle.”

Phoenix, AZ  (Tuesday, October 1, 2013) --  “We remain convinced that the airline merger between U.S. Airways and American Airlines is harmful to competition, and to Arizonans. This merger would inevitably result in higher fares and lesser service as more routes would be monopolized by just one carrier.

The law of supply and demand is an unchangeable law of nature, like the law of gravity. When there are more suppliers, prices go down and service goes up as they compete for business. As the number of airline carriers has decreased in recent years, we’ve all seen fares go up and new fees imposed for baggage, desirable seats, etc. Our complaint quotes one of the airline presidents as reporting that consolidation (mergers that reduce the number of airlines) has enabled the airlines to raise prices.

Less competition means fewer choices, diminished service, and higher prices. It is a law of nature. Arizona will continue the fight to promote competition in order to produce more service and reasonable prices for the people of Arizona. The trial is set for November 25th.”