American Airlines, US Airways merger challenged by Department of Justice
WASHINGTON (WJLA) - The proposed merger to make the world's biggest airline just hit some major turbulence.
The Department of Justice, along with the attorneys general from D.C., Virginia and five other states, filed suit in federal court Tuesday to block the $11 billion merger of American Airlines and U.S. Air.
The DOJ lawsuit argues passengers using Reagan National will be "particularly hurt."
The combined new American Airlines would control 69% of the take-off and land slots while having a monopoly on 63% of the nonstop flights from the airport.
The suit claims that “as a result, Washington, D.C. area passengers would likely see higher prices and fewer choices if the merger were approved."
Both American Airlines and U.S. are vowing to vigorously defend the merger and claim it would promote competition and provide flyers with more options.