Since AA came across as having a strong recovery potential and LCC showed good numbers, the merger attracted antitrust observers. Had AA needed the merger to keep integrity and work around liquidation, DOJ would have been less proactive.

DOJ fights are tough, in particular when there is executive power blessing. I don't see why AA/US should waste time on it. AA can truly reorganize its workforce/pension plans and become profitable in the short term, leaving behind the BK overhead, with organic growth delayed a few years. Yes, it would be tough on the workforce, but that's the state of the industry today.

Competition from independent AA and others will make US a better airline, even after US contracts renegotiation. AA / US pricing will converge to the middle, better average than higher post-merger. Routes would be kept. And that's without even considering degradation in the quality of service, a set tone for post-merger management. Horton made the takeover difficult, US reaction was picked up by the DOJ.

What if one of them fail? Then, it'd be a no brainier to go for an acquisition, but there's time for that and DOJ will not argue then.

I applaud the DOJ initiative to give both companies the chance to serve the public better. ^