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Tuesday, February 26, 2013

American, US Airways execs face gentle questioning in Congress, (NYSE: LCC)

Executives from American Airlines and US Airways Group Inc on Tuesday faced gentle questions from lawmakers about their planned merger, with some expressing concern about losing hubs in their districts. US Airways Executive Vice President Stephen Johnson and American Airlines General Counsel Gary Kennedy defended the proposed $11 billion transaction by saying the companies had largely complementary networks, so little competition would be lost.The Justice Department's Antitrust Division will review the deal to ensure it complies with antitrust law. Congress has no formal role in that process.The executives faced few questions on what has been the primary concern about the merger - whether the deal would mean higher prices for the flying public.Representative John Conyers, a Michigan Democrat, though, said he was concerned a reduced number of airlines would leave them room to control the market.

US Airways Group, Inc. operates and owns passenger and freight airline carrier. Shares of LCC traded higher by 1.92% or $0.25/share to $13.27. In the past year, the shares have traded as low as $6.78 and as high as $15.64. On average, 7390140 shares of LCC exchange hands on a given day and today's volume is recorded at 7816343.