US government seeks to block American-US Airways merger

CNN: Washington (CNN) -- The Justice Department and attorneys general from six states and the District of Columbia filed a lawsuit Tuesday challenging the $11 billion merger of American Airlines and US Airways, saying the combination would lead to higher prices and less service for consumers.

The merger, which would create the world's largest airline, would "substantially lessen competition" for commercial air travel, contends the complaint, filed in U.S. District Court in Washington.

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