Airline merger hitch

The article says the proposed merger between American Airlines and US Airways is valued at about $US11 billion.

The US Justice Department, together with several US states, has filed lawsuits seeking to block the merger.

Regulators argue the $US11 billion merger would reduce competition in the airline industry, which is the reason given for the legal action.

According to the article, both airlines say they are determined to fight the legal action meant to block the proposed link.

The article states that the deal would create the world’s largest carrier, making it a highly significant consolidation in the industry.

The article does not provide specific investor guidance, but it reports that lawsuits have been filed to block the merger and that the airlines intend to fight those suits—investors will want to follow legal developments closely.

Regulators, including the US Justice Department and several states, allege the merger would reduce competition in the market.

No final decision is reported in the article; it confirms only that lawsuits have been filed to block the merger and that the airlines plan to contest the legal action.