US moves to block US Airways-American Airlines merger

WASHINGTON: The US justice department and several states sued on Tuesday to block the $11 billion merger between American Airlines and US Airways, saying it would cut competition and push fares significantly higher. 

It said the two could well stand on their own in the business and that combining them would hike ticket prices in an industry already rife with quiet cooperation on fares. 

The move effectively dragged to a halt the long-pending merger to create the world's largest airline, as American Airlines and its parent AMR Corp. exit bankruptcy restructuring.