Feds, Kathleen Kane Challenge US Airways, American Airlines Merger

Business Insider reports the Justice Department is suing to block the merger of US Airways—which has a Philadelphia hub—and American Airlines. The future of the Philly hub has been an ongoing issue as regulators examined the proposed merger.

In its statement, the DOJ said the merger would “result in US consumers paying higher airfares and receiving less service,” and that the suit “seeks to maintain competition in the airline industry.”

The suit has been filed in the US District Court for the District of Columbia, and the DOJ is joined by the attorneys general of Texas, Arizona, Florida, Washington DC, Pennsylvania, Tennessee, and Virginia.

The merger was expected to create the world’s largest airline.