FYI: Business

Airlines sue FAA over slots auction

The Air Transport Association, the trade group representing the nation’s airlines, has filed a lawsuit against the Federal Aviation Administration in an effort to halt the agency’s proposed auction of slots at congested U.S. airports.

ATA’s lawsuit, a petition for review filed in the U.S. Court of Appeals for the District of Columbia, alleges that the FAA slot auction is, in effect, a final rule that “should be held unlawful and set aside because these actions are in excess of the FAA’s statutory authority; constitute unauthorized regulatory action ; are contrary to express statutory limitations imposed by Congress ; are without observance of procedure required by law; and are arbitrary, capricious and otherwise not in accordance with law.”

ATA President and CEO James May said the FAA’s claim that it can use its property management authority to auction slots is a “disturbing” end run around Congress.

CVS trying to buy Longs Drug Stores

Chicago-based drug store chain CVS Caremark Corp. said Tuesday that it’s buying Longs Drug Stores Corp. in a deal valued at $2.7 billion, excluding the assumption of debt.

The $71.50 per-share cash offer, announced after the close of trading, is a 32 percent premium over Walnut Creek, Calif.-based Longs’ closing price of $54.04.

Including the assumption of the chain’s $200 million in debt, the deal is valued at $2.9 billion.

Originally published by Bloomberg, AP and staff reports.

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