Federal Government Sues to Block $14 Billion Airline Merger, Execs Stunned
DALLAS (TheBlaze/AP) — The U.S. government on Tuesday moved to block a multibillion dollar merger between US Airways and American Airlines, a move that has left investors and airline executives stunned.
The feds said Tuesday the merger, which is estimated to be worth about $14 billion, would hurt competition and cost consumers hundreds of millions of dollars a year in higher fares and extra fees.
Six states, including Texas, Arizona, Florida, Pennsylvania, Tennessee, and Virginia, and the District of Columbia have joined the antitrust lawsuit.
Antitrust regulators had done little to interfere with three other big airline mergers in the past five years, so they were not expected to stand in the way of American and US Airways. But feds say this latest deal would leave four airlines controlling more than 80 percent of the U.S. air-travel market.
"Don't you love farce?
My fault, I fear.
I thought that you'd want what I want -
Sorry, my dear.
But where are the clowns?
There ought to be clowns.
Quick, send in the clowns."