The merger between US Airways and American
Airlines faces an anti-trust lawsuit filed Tuesday by the US Justice
Department and officials in seven local jurisdictions.
The 11-billion-dollar merger would create the world's largest airline, and the Justice Department says a decrease in competition for flights would result in higher airfares and less service for customers.
Six states and the US capital, Washington, joined the Justice Department in the legal challenge. The states include Texas, where American Airlines is headquartered, and Arizona, which is home to US Airways.
The carriers currently compete on more than a thousand routes and have head-to-head competition on non-stop routes worth 2 billion dollars in annual revenue, the Justice Department said.
The airlines announced their merger in February and planned to close the deal in this quarter. The deal was designed to provide a way out of bankruptcy for American.
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