Justice Sues To Block American, US Airways Merger

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A deal to combine the two carriers was announced in February. The government says the proposed merger would hurt consumers by reducing competition, leading to an increase in fares and some of the other fees those airlines charge.

DAVID GREENE, HOST:

NPR's business news begins with a possible airline cancellation.

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GREENE: The Justice Department has filed a lawsuit to block the merger of US Airways and American Airlines. A deal to combine the two carriers was announced in February. If they merge, the new airline would carry more passengers than any other in the world. It would also get American Airlines out of bankruptcy.

The government says the proposed merger would hurt consumers by reducing competition, leading to an increase in fares and some of the other fees those airlines charge. The feds are being joined by several states in the suit including Texas, where American is headquartered, and Arizona, the home of US Airways.

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