WASHINGTON — The Justice Department and a number of state attorneys general on Tuesday challenged a proposed $11 billion merger between US Airways Group Inc. and American Airlines' parent company, AMR Corp.
The Justice Department says the deal would result in the creation of the world's largest airline and that a combination of the two companies would reduce competition for commercial air travel in local markets and would result in passengers paying higher airfares and receiving less service.
The federal government and the state attorneys general filed a lawsuit filed in federal court in Washington, D.C., seeking to prevent the companies from making the deal.
A spokesman for US Airways had no immediate comment. American Airlines did not immediately return a call seeking comment.