The Justice Department, along with the attorneys general of six states and the District of Columbia, filed a lawsuit yesterday seeking to block the proposed merger of American Airlines and US Airways, the New York Times DealBook blog reported yesterday. Dealing an unexpected blow to a yearlong effort to create the world’s biggest airline, the Justice Department said that the merger between the two airlines would substantially reduce competition, increase air fares and cut service to travelers. After approving a series of mergers between the nation’s airlines in recent years, the Justice Department’s decision came as a surprise to both carriers, who had expressed confidence the deal would go through with only a few changes. Antitrust regulators had not challenged an airline merger since the planned tie-up between United Airlines and US Airways in 2001. In recent years, however, consumer groups and some economists have warned that the wave of consolidation in the airline sector had contributed to higher airfares and less choice for consumers. The civil antitrust lawsuit to challenge the planned deal was filed in the United States District Court for the District of Columbia. The Justice Department said the vast majority of domestic airline routes were already highly concentrated. A merger of American and US Airways, it said, would result in four airlines controlling more than 80 percent of the United States market for commercial air travel.
