Department of Justice, states move to block American Airlines - US Airways merger

The Department of Justice and several states have apparently joined forces to file an anti-trust lawsuit seeking to block the merger of American Airlines and US Air.

The DOJ and several state attorneys general are challenging the proposed $11 billion merger between US Airways Group Inc. and American Airlines' parent company, AMR Corp.

The proposed merger would create the world's larges airline, and the government argues that would reduce competition for commercial air travel, especially in local markets, and would mean higher air fares and less service for travelers.

The anti-trust lawsuit, filed in Washington, D. C. federal court, would prevent the merger.

Neither airline has yet commented.