Government Lawsuit Seeks to Block AMUS Airways Merger

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Government Lawsuit Seeks to Block AMUS Airways Merger

by Joel R. Glucksman on August 23, 2013

A government lawsuit, filed by the Justice Department and several states, is seeking to

halt the proposed American Airlines merger with US Airways. The merger - the final step

in AMR's exit from bankruptcy protection - would create the largest airline in the world.

The government's antitrust suit was largely unexpected, as the two airlines have been

making notable and unimpeded progress toward their merger in recent weeks.

However, the suit will halt those plans, as the Justice Department seeks to prove that the merger will hinder competition and hurt consumers by leading to higher fares and fees. Should the merger be pushed through, the government said, it feared the new airline would control more than 80 percent of the U.S. commercial air market.

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