The Justice Department’s surprise lawsuit to block the proposed $11 billion consolidation of American Airlines and US Airways appears to doom the latest airline mega-merger, at least in its current form. But for airline passengers, the prospect of two stand-alone airlines is mostly good news.
Stopping the transaction will keep airfares affordable and fees in check by maintaining the present level of competition, according to the federal government. It will also give consumers more choices in air travel. “By challenging this merger, the Department of Justice is saying that the American people deserve better,” said Attorney General Eric Holder in a prepared statement. Six states — including Arizona and Texas, where US Airways and American, respectively, are based — and the District of Columbia joined the DOJ in the antitrust lawsuit. Read more “Blocking this airline mega-merger is good for travelers”