US Airways-American Airlines merger challenged by feds

11:12 AM, Aug 13, 2013   |    comments
The tails of American Airlines and US Airways aircraft are seen at Ronald Reagan Washington National Airport on April 23, 2012. (Photo: Jim Watson, AFP/Getty Images)
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WASHINGTON (USA Today) -- The Justice Department and several states have filed a lawsuit to halt the proposed merger of American Airlines and US Airways.

The airlines had anticipated merging within months to create the world's largest airline to compete against United and Delta airlines. But the lawsuit will hinder those planes.

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The Justice Department filed the case with states of Arizona, Florida, Pennsylvania, Tennessee, Texas and the District of Columbia.

The lawsuit contends that the merger would hurt consumers.

"Because of the size of the airline industry, if this merger were approved, even a small increase in the price of airline tickets, checked bags, of flight change fees would cause hundreds of millions of dollars of harm to American consumers annually," the lawsuit says.

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