Feds Try To Block US Airways Merger With American Airlines

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.

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

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