Justice Department Challenges American, US Airways Merger

    AMR US Airways Merger

    Federal prosecutors say not so fast to a merger that would create the world’s largest airline.

    FOX News Radio’s Steve Taylor reports from Washington:

    The two are American Airlines and US Airways. The Justice Department says their proposed merger would make a single airline big enough to shrug off competition from other carriers, especially in cities where the merger partners now go head-to-head. Attorney General Eric Holder says the result would be “higher airfares, higher fees and fewer choices” of flights for consumers. Joining in this federal lawsuit are the Attorneys General of six states — Texas, Arizona, Florida, Pennsylvania, Virginia and Tennessee, plus the District of Columbia. No comment yet from the two airlines.

    In Washington, Steve Taylor, FOX News Radio.