Plans to create the world’s biggest airline by sales hit severe problems yesterday after the US justice department sued to block the $11bn merger of US Airways and American Airlines’ bankrupt parent.
If the two airlines fail to overturn the suit, they will be forced to unpick a merger they had been planning for more than a year, which the two sides had expected to complete before the end of next month.
Bill Baer, assistant attorney-general for the justice department’s antitrust division, signalled that the unexpected move reflected wider fears about the state of competition. He played down the chances that the department would reach agreement with the airlines on remedies that would allow a modified deal to pass.
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