WASHINGTON--The Justice Department asked a federal judge to
postpone proceedings Tuesday in the government's challenge to the
merger of US Airways Group Inc. (LCC) and American Airlines' AMR
Corp. (AAMRQ), citing a lack of funding because of the shutdown of
the federal government.
The department, in a brief two-page filing, asked U.S. District
Judge Colleen Kollar-Kotelly to stay all court proceedings "until
Congress has restored appropriations."
The department noted that under the shutdown its employees were
generally prohibited from working, even on a voluntary basis,
except in limited circumstances, including "emergencies involving
the safety of human life or the protection of property."
Department lawyers said that if the judge denies the stay
request, they will continue to work on the case because her action
would "constitute express legal authorization" for them to stay on
the job.
The government's filing indicated the airlines objected to the
request for postponement.
A status hearing in the case was scheduled for later Tuesday
morning. The trial is set to begin Nov. 25.
The Justice Department argues the merger would harm industry
competition and result in higher airfares, higher fees and fewer
choices for consumers. The airlines say their merger will allow
them to offer more flights to more destinations, reduce costs and
offer lower prices and better service.
Write to Brent Kendall at brent.kendall@dowjones.com
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