DOJ Blocks US Airways-American Airlines Merger

by Karl Utermohlen | August 13, 2013 2:13 pm

DOJ Blocks US Airways-American Airlines Merger

The planned merger between US Airways (LCC[1]) and American Airlines (AAMRQ[2]) could be halted, as the U.S. Department of Justice has filed an antitrust lawsuit to stop the merger.

The Los Angeles Times reports[3] that the DoJ issued a 56-page complaint to the U.S. District Court regarding the the merger’s alleged violation of U.S. antitrust laws. Department of Justice attorneys believe that increasing airline fees among major airlines could go even higher if the merger goes through.

The announcement of the $11 billion union between the two airlines came in February[4], and many fear that flying will become even more expensive if US Airways and American Airlines unite.

If the new merged airline does in fact raise ticket prices and fees, other major U.S. airlines could follow suit, the Department of Justice contends.

Endnotes:
  1. LCC: http://studio-5.financialcontent.com/investplace/quote?Symbol=LCC
  2. AAMRQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAMRQ
  3. The Los Angeles Times reports: http://www.latimes.com/business/money/la-fi-mo-us-sues-to-block-us-airways-american-airlines-merger-20130813,0,3158544.story
  4. came in February: http://investorplace.com/2013/02/11-billion-merger-to-create-worlds-largest-airline/

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