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.
Most Popular Stories
- Stop-Start Engines Save Gas, Reduce Emissions
- Shia LaBeouf Plea Deal, Alcoholism Treatment
- Ohio State Band Chief Fired After Probe
- Hispanic Leader Goes the Extra Mile
- Morgan Stanley Ponies Up $275 Million to Settle SEC Charges
- Ricky Martin Joins 'The Voice ... Mexico'
- Jennifer Lopez, Pitbull to Perform at Fashion Rocks
- Ukraine Says Russians Firing Across the Border
- Ford Q2 Net Profit up 6 Percent
- U.S. Weighs Refugee Status for Immigrant Kids