US sues to block US Airways-American Airlines merger
WASHINGTON (AFP) - The US Justice Department and several states sued Tuesday to block the US$11 billion (S$13.9 billion) merger between American Airlines and US Airways, saying it would reduce competition and push up fares.
Justice officials said US Airways was pushing the merger specifically to reduce competition and boost returns.
And they insisted that, contrary to the arguments that the long-gestating merger is key to American's bankruptcy restructuring program, that both airlines could stand on their own profitably without merging.
"The lawsuit gives consumers the best possible chance for continued competition," Assistant US Attorney General Bill Baer told reporters.