The Justice Department asked a federal judge Monday to approve terms for the merger of American Airlines and US Airways under a settlement reached in November, without making any changes after a mandated public comment period.
Separately, American Airlines announced that as a result of the merger it would end agreements with JetBlue covering joint ticketing, baggage handling and
The merger settlement requires the combined airline to sell 104 of its time slots at Reagan National Airport, 34 slots at LaGuardia Airport in New York, and gates and ground facilities at five other major airports. Afterward, the new combined airline would have about 55 percent of the limited number of slots at Reagan National, down from 72 percent. American Airlines sold most of the slots it must divest at Reagan National to Southwest, JetBlue and Virgin America.
The Justice Department said in its filing with the court that the settlement would not create a new independent airline or protect the discounted Advantage fares that are likely to end. But it said that “the divestitures will bring the
consumer-friendly policies of the [low-cost carriers] to more travelers across the country.”
Government-owned mortgage financiers Fannie Mae and Freddie Mac could send about $179.2 billion in profit to taxpayers during the next 10 years if the terms of their bailout remain intact, the White House budget office said Monday.
The amount is more than triple the estimated 10-year payments calculated last year in the White House budget proposal.
Fannie Mae and Freddie Mac have operated under federal conservatorship since 2008. They received $187.5 billion in taxpayer funds, but they have returned to profitability, and by the end of March they will have had paid $202.9 billion in dividends to the Treasury.
The projections come in an addendum to President Obama’s fiscal 2015 budget proposal. Last year, the administration estimated that Fannie Mae and Freddie Mac would send Treasury $51 billion through 2023.
Under a 2012 revamp of their bailout terms, Fannie Mae and Freddie Mac send a majority of their profits to Treasury as dividends, and they are unable to repurchase the controlling share the government took when it bailed them out.
● The collapse of Japan’s Mt. Gox Bitcoin exchange is spilling into U.S. Bankruptcy Court as the company scrambles for legal cover after losing digital currency valued at $473 million. Mt. Gox’s bankruptcy filing in Dallas late Sunday supplements a similar petition made in Japan last month following the exchange’s abrupt closure.
● Cybersecurity firm McAfee said Target’s security breach was anything but exotic, describing the attack as a Breach 101 operation. The thieves used easily modified off-the-shelf malware, common methods to hide the malware inside Target’s point-of-sale system and didn’t encrypt either the instructions on where to send the stolen card data or the card information itself as it was being transmitted out of Target to a remote server, a data stream that should have been detected and caught, McAfee said in its fourth-quarter threats report. The characterization contrasts with other depictions of the attack as highly sophisticated. Target declined to comment on McAfee’s report.
● The U.S. Navy has awarded contracts worth nearly $1.4 billion to buy four more Littoral Combat Ships — two from Lockheed Martin and two from Australia’s Austal, the Defense Department said. Bethesda-based Lockheed won a contract valued at $699 million to build two more of its steel monohull-design ships, while Austal won a contract worth $684 million to build two more of its aluminum trimaran design.
— From news services
● 10 a.m.: Wholesale trade inventories for January.