DOJ to block merger of American Airlines US Airways
August 14 , 2013
The merger between US Airway and AMR Corp had been backed up by the European Union and approved by a judge but the $11 billion merger is now being challenged by the Department of Justice and some US state attorneys.
The lawsuit is looking to preserve competition while preventing the creation of the largest airline in the world, which could result in passengers paying higher airfares and not receiving appropriate service.
American Airlines has been in bankruptcy protection in the recent years while US Airways has been profitable. If merged, the two would have a revenue of $40B annually.
There has been no comment yet from either of the airlines.