Not so fast, New American. The Justice Department has filed a lawsuit challenging the $11 billion merger of US Airways and American Airlines, announced in February. The proposed consolidation, the complaint argues, would create the world’s largest airline, reduce competition, and “result in passengers paying higher air fares and receiving less service.” Last year, travelers spent more than $70 billion on airfare and airlines have “in tandem, raised fares, imposed new and higher fees and reduced service,” the department said. Both companies’ stocks fell following the DOJ’s announcement.
Read it at Department of Justice
