Justice Department Sues Airlines to Prevent Fare Hikes

David Miller
Beyond The Headline

The justice department has sued to stop the merger of US airways and American Airlines because they believe it will, "shaft" customers and raise rates, as one one Assistant Attorney General put it.

To make their point the Justice Department compared a route from NY to Houston on U.S. Airways that was listed for under $600 but cost over $1,400 on American Airlines, more than an $800 difference. The government is saying the aggressive pricing of U.S. airways will be lost if it's allowed to merge with American.

American Airlines and U.S. Airways are having none of this. They both say they will fight the case all the way through the courts and an industry analyst believes there is a chance they will win, possibly by the end of the year.

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