News

Actions

Feds seek to stop airlines merger

US Airways & American Airlines meger
Posted at 2:08 PM, Aug 13, 2013
and last updated 2013-08-13 10:15:42-04

WASHINGTON (AP) — In a surprising challenge, the federal government seeks to stop the proposed merger of US Airways and American Airlines, saying the deal to create the world's largest airline would result in "substantial harm to consumers" in the form of higher fares and fees.

The Justice Department's opposition was unusually broad and came after antitrust regulators had allowed three other major airline mergers to go ahead in the last five years. As shares of both companies plunged, the airlines vowed to fight back.