The U.S. Justice Department on Tuesday filed an antitrust lawsuit challenging the merger of US Airways and American Airlines, arguing that further consolidation of the industry would lead to higher fares and cooperation among remaining airlines to increase ancillary fees.
The merger of the two airlines, announced in February, had recently drawn scrutiny from lawmakers and the U.S. Government Accountability Office. The GAO, which neither opposed nor recommended the merger, said the transaction would cut competition on 1,665 routes with at least one stop.
The Justice Department filed a 56-page complaint Tuesday in the U.S. District Court for the District of Columbia.
The complaint argues that the merger would reduce the number of major domestic airlines from five to four.
"Because of the size of the airline industry, if this merger were approved, even a small increase in the price of airline tickets, checked bags, or flight change fees would cause hundreds of millions of dollars of harm to American consumers annually," attorneys wrote.
That consolidation, the U.S. argues, would make it easier for remaining airlines to cooperate, rather than compete, on prices and services.
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