Sounding more like a Democrat, Republican Florida Attorney General Pam Bondi has fought against free market capitalism almost from the day she took office and continues today merging her efforts alongside President Barack Obama. She has stood in the way of Floridians getting much needed medication and now she stands in the way of two airlines joining forces in their effort to more efficiently operate their business. Yesterday, some members of Congress from South Florida wrote Bondi contending the merger is needed to keep the two airlines competitive. They also impressed upon her that her lawsuit could negatively impact thousands of jobs.
In August Bondi joined forces with President Obama's Department of Justice and six other state attorney generals to block the merger between American Airlines and US Airways. According to a press release from her at the time she said, "This merger would be anti-competitive and harmful to consumers, with 20 percent of the problematic flight routes affecting Florida. By filing this lawsuit, we hope to save consumers from potential multi-million dollar increases in prices and fees.” Bondi clearly does not believe it would stoke additional competition should the combined airline not provide excellent value for Floridians and puts little faith in the free market. US Airways and American Airlines only compete on 12 nonstop routes, meaning the new airline will face plenty of competition from other companies that will keep prices low. Plus, the merger will create $1.4 billion of annual added benefit from new revenues and lower costs-leading to cost savings for consumers.
American Airlines has been struggling for years causing it to file for bankruptcy in 2011. On October 21, 2013 U.S. Bankruptcy Judge Sean Lane formally confirmed the plan of reorganization proposed by American Airlines Inc. and parent AMR Corp. The plan would involved American Airlines emerging out of bankruptcy as American Airlines Group which would be to the inclusion of the assets of US Airways. However it will all be for naught if Pam Bondi gets her way if she and her allies win in court on November 25, 2013 when the anti-trust suit will be heard.
Tens of thousands of jobs are at stake as without the US Airways merger it is widely seen that American Airlines will go out of business laying off 60,000 employees. This is one of those cases where the labor unions and management are in agreement, but the obtrusive government gets in the way. The merger is an exemplar of how the market through voluntary cooperation creates beneficial arrangements for all parties involved. That’s why American’s three unions have endorsed the deal, and 66 Congressional Democrats sent a letter to President Obama urging the Department of Justice to drop this destructive case.