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The Justice Department Has Filed a Lawsuit to Halt the Proposed Merger of American Airlines and US Airways

Posted on 8/13/2013 by with 0 comments

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 plans.

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The Justice Department filed the case in U.S. District Court for the District of Columbia with states of Arizona, Florida, Pennsylvania, Tennessee, Texas and the District of Columbia. The lawsuit contends that the merger would hurt consumers.

“While shareholders might benefit, creditors might benefit from consolidation, the fact of the matter is, consumers will get the shaft,” Bill Baer, assistant attorney general for the antitrust division, told reporters in a conference call. “The right option here is a full-stop injunction.”

 

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