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BUSINESS A25
Wednesday 11 November
US sues over proposed deal between United, Delta at Newark
ERIC TUCKER That is why we are seeking A United Airlines plane, top left, takes off from Newark Liberty International Airport, in Newark,
DAVID KOENIG this injunction,” Assistant N.J. The Justice Department sued Tuesday, Nov. 10, 2015, to block a deal that would have
Associated Press Attorney General Bill Baer, allowed United Airlines to acquire 24 takeoff and landing slots at Newark Liberty International
WASHINGTON (AP) — The the head of the Justice Airport. Federal officials said the deal with Delta Air Lines would have given United, already the
federal government wants Department’s antitrust divi- dominant airline at the airport, an even greater competitive advantage that would have driven
to block a deal that would sion, said in a conference up fares for the 35 million passengers who fly in and out of Newark every year.
increase United Airlines’ call with reporters.
grip over Newark Liberty In- Newark had the highest (AP Photo/Julio Cortez)
ternational Airport, saying average fares of all major
that it would drive up fares. U.S. airports at the start of Newark, New Jersey. The to acquire even more slots al and already moved its
Newark serves 35 million 2015, according to the Bu- Justice Department charg- at Newark would fortify JFK flights to Newark. Its last
passengers a year, and its reau of Transportation Sta- es that United already con- United’s monopoly position JFK flight was on Oct. 25.
airfares are already among tistics. trols roughly 73 percent — and weaken the ability of The Justice Department
the highest in the nation. United said that with three 902 out of 1,233 — of the other airlines to compete.” alleges that United is “sit-
The Justice Department on major airports, the New slots allocated by the Fed- United traded its remaining ting on many of its flights”
Tuesday sued to block a York City area is the most eral Aviation Administra- slots at New York’s John F. and intentionally limiting
deal that would let United competitive air market in tion, or over 10 times more Kennedy International Air- its service at the airport.
acquire 24 takeoff and the country. than its closest competitor. port to Delta while gain- It operates only 386 daily
landing slots at Newark “We firmly believe this The lawsuit was filed, Baer ing Delta’s slots at Newark. roundtrip flights at Newark
from Delta Air Lines. Feder- transaction benefits our said, “because we deter- United expected the deal even though its slots would
al officials said the agree- customers and the region mined that allowing United to clear regulatory approv- allow it to operate 451.q
ment would give United by enabling us to enhance
— already the dominant service at our Newark hub
airline at the airport near and manage congestion
Lower Manhattan — an at the airport,” said United
even greater competitive spokesman Rahsaan John-
advantage that would son.
lead to higher fares and In afternoon trading, shares
fewer choices for passen- of United Continental Hold-
gers. ings Inc. rose 10 cents to
“We know from experi- $60.25 while shares of Delta
ence what happens when Air Lines Inc. fell 31 cents to
competition is allowed to $50.32.
flourish. This transaction will The government filed the
have the opposite effect. lawsuit in federal court in
Egypt stocks drop after Russia suspends flights to country
MARAM MAZEN litical turmoil.
Associated Press
CAIRO (AP) — Egypt’s The drop is caused by neg-
benchmark stock index
plunged 4.4 percent on ative internal and external
Tuesday after steadily de-
clining since Russia sus- factors, said Amr Elalfy,
pended flights to Egypt fol-
lowing the Oct. 31 Russian global head of research
plane crash in the Sinai
Peninsula. at Mubasher Financial Ser-
U.S. and British officials
have cited intelligence re- vices.
ports as indicating that the
Russian passenger flight “Internally, you have the
from the Sinai resort town
of Sharm el-Sheikh to St. Pe- Russian plane, the impact-
tersburg was likely downed
by a bomb on board. All ed tourism, and the coun-
224 people onboard were
killed in the crash, most of tries that have suspended
them Russian tourists.
Last Wednesday, the U.K. flights to Sharm el-Sheikh,”
suspended flights to Sharm
el-Sheikh and two days lat- said Elalfy.
er, Russia went a step fur-
ther, suspending all flights In addition, the arrest on
to Egypt amid airport se-
curity concerns — a move Sunday of Salah Diab,
that threatened to further
devastate the Egyptian the largest shareholder of
tourism industry, already
suffering after years of po- the independent daily Al-
Masry Al-Youm who was
detained with his son, and
also the detention the
same day of leading inves-
tigative journalist and hu- Egyptian traders work on the floor of the stock market in Cairo, Egypt. Egypt’s benchmark stock
man rights advocate Hos- index plunged 4.4 percent on Tuesday, Nov. 10, 2015, after steadily declining since Russia
sam Bahgat, also damp- suspended flights to Egypt following the Oct. 31 Russian plane crash in the Sinai Peninsula.
ened the mood in the mar- Russia suspended all flights to Egypt ast Friday amid airport security concerns — a move that
ket, said Elalfy. threatened to further devastate the Egyptian tourism industry, already suffering after years of
Bahgat’s detention political turmoil. (AP Photo/Amr Nabil)
prompted an internation- released on Tuesday. tions of possessing two ille- manner in which he was
Egypt’s state-run news gal automatic rifles. arrested — by officers in full
al outcry and statements agency reported Tuesday Senior Al-Masry Al-Youm body armor at the break
that Diab will be jailed for employees told The Asso- of dawn in his bedroom —
of concern from the U.S. 15 more days pending in- ciated Press on Monday suggests it was “an act of
vestigations over accusa- the accusations and the political vengeance.”q
government and United
Nations Secretary-General
Ban ki-Moon. Bahgat was
