Feds Stall Airline Merger

Feds Stall Airline Merger, The Justice Department and attorneys general from six states and Washington, D.C. have sued to block the proposed $11 billion merger between US Airways and Americans Airlines’ parent company, saying the merger would threaten “substantial harm to consumers.”

Filing the suit in federal court in D.C., they say the merger would create the world’s largest airline and “would substantially lessen competition for commercial air travel in local markets throughout the United States and result in passengers paying higher air fares and receiving less service.”

Attorney General Eric Holder said the transaction between US Air and AMR Corp. would result in “higher airfares, higher fees and fewer choices.”