July 27, 2001: Fearing a Department of Justice lawsuit, UAL and US Airways abandoned their $12.3 billion merger leading UAL to pay US Airways a $50 million breakup fee. Chicago-based UAL had tried to abandon the deal a month earlier when the DOJ first announced its planned suit, but US Airways pressed to fight on. Ultimately, the Arlington, Va. airline agreed to accept the withdrawal. Six weeks later, the terrorist attacks on the World Trade Center and Pentagon would send the industry into a recession. However, both airlines were already troubled before the attacks. At the time of the deal's withdrawal, UAL had reported a $292 million quarterly loss and US Airways reported a $24 million quarterly loss. Both fell into bankruptcy the following year.—Matthew Wurtzel
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See UAL bankruptcy profile from Bankruptcy Insider
See US Airways bankruptcy profile from Bankrputcy Insider
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