In an interesting move, the U.S. Department of Justice today filed a lawsuit to block the proposed American Airlines-US Airways merger. It is believed the merger, which would create the largest carrier in the world, could raise airfare and reduce choice for U.S. consumers. Six states and the District of Columbia joined the Department of Justice in opposing the merger. While the Delta-Northwest, United-Continental, and Southwest-AirTran mergers proceeded unopposed, the marriage of American and US Airways allegedly creates too much control in key U.S. markets and raises antitrust concerns by limiting competition. This will be very interesting to follow in the months ahead… Stay tuned.
Check out the Washington Post article for more details on today’s filing by the U.S. Government.