Airline merger hitch

The US Justice Department and several US states have filed lawsuits seeking to block the proposed US$11 billion merger between American Airlines and US Airways, arguing it would reduce competition. The two airlines say they are determined to fight the legal action.

The lawsuits were filed by the US Justice Department together with several US states, according to the article.

Authorities say the merger would reduce competition in the airline industry — a core antitrust concern cited by the Justice Department and the states in their legal filings.

Both airlines have said they are determined to fight the legal action that aims to block the transaction.

If approved, the tie-up between American Airlines and US Airways would create the world’s largest carrier, as stated in the article.

The merger is valued at US$11 billion, according to the article.

In this article, saying the deal would ‘reduce competition’ means the Justice Department and several states believe combining the two carriers would lessen rivalry in the airline market — the central legal basis for their lawsuit to block the merger.

The merger is contested: the Justice Department and several states have filed lawsuits to block it, and the airlines say they will fight that legal action.