The Government Is Suing To Block The Merger of American Airlines And US Airways
REUTERS/Carlo AllegriThe Justice Department is suing to block the merger of American Airlines and United Airlines, it said in a statement today.
The combination of the two carriers, announced in February, would create the world's biggest airline, and bring American Airlines out of bankruptcy.
In its statement, the DOJ said the merger would "result in US consumers paying higher airfares and receiving less service," and that the suit "seeks to maintain competition in the airline industry."
The suit has been filed in the US District Court for the District of Columbia, and the DOJ is joined by the attorneys general of Texas, Arizona, Florida, Washington DC, Pennsylvania, Tennessee, and Virginia.
The newly formed mega-carrier would take the name American Airlines, and fly 3,200 daily fights on 900 planes.