Antitrust Suit Filed To Stop Airline Merger
The U.S. Department of Justice filed a civil antitrust lawsuit on Tuesday to challenge the proposed $11 billion merger between US Airways and American Airlines. The suit claims the merger, which would result in the creation of the world’s largest airline, would substantially lessen competition for commercial air travel in the U.S. and would result in higher airfares and less service for passengers. “Airline travel is vital to millions of American consumers who fly regularly for either business or pleasure,” said Atty. Gen. Eric Holder, in a news release. “By challenging this merger, the Department of Justice is saying that the American people deserve better." In recent years, major airlines have raised fares, imposed new and higher fees and reduced service, the justice department said. The airlines had announced their merger plans in February. FULL STORY