U.S. Seeks to Block Airline Merger —American Airlines & US Airways
Updated, 12:41 p.m. | The Justice Department, along with the attorneys general of six states and the District of Columbia, filed a lawsuit on Tuesday seeking to block the proposed merger of American Airlines and US Airways.
Dealing an unexpected blow to a yearlong effort to create the world’s biggest airline, the Justice Department said the merger between the two airlines would substantially reduce competition, increase air fares and cut service.
After approving a series of mergers between the nation’s airlines in recent years, the Justice Department’s decision came as a surprise to both carriers, who had expressed confidence the deal would go through with only a few changes. Antitrust regulators had not challenged an airline merger since the planned tie-up between United Airlines and US Airways in 2001.