PHOENIX — Arizona has joined a handful of states and the U.S. Department of Justice in an attempt to block the proposed $11 billion merger between US Airways and American Airlines.
In the meantime, US Air CEO Doug Parker said the legal action will prevent the merger from closing in the third quarter of 2013.
State Attorney General Tom Horne said in a release Tuesday, “Competition is crucial for a vital economy. … This merger is anticompetitive and Arizona consumers will be forced to pay millions of dollars more each year in increased airfare if it goes through as planned.”
US Air is based in Tempe.
Parker wrote in a letter to employees released to the media, that the disappointed companies “no longer expect the merger to close during the third quarter of 2013” and that “we are mounting a vigorous and strong defense in federal court against the DOJ’s case.”
Other states joining the lawsuit, which was filed in federal court the nation’s capital, are Florida, Pennsylvania, Tennessee, Texas and Virginia, plus the District of Columbia.
The Justice Department said the deal would result in the creation of the world’s largest airline and that a combination of the two companies would reduce competition for commercial air travel in local markets and would result in passengers paying higher airfares and receiving less service.
In February, the companies disclosed their plans to create a company with 6,700 daily flights and annual revenue of roughly $40 billion.
U.S. Attorney General Eric Holder said the transaction between US Airways and American would result in “higher airfares, higher fees and fewer choices.”
Last year, business and leisure airline travelers spent more than $70 billion on airfare for travel throughout the United States.
Associated Press contributed to this article.
- Locals helping locals: 6 success stories you need to know about
- Sunscreen facts that could save your life
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Water tips to save money, help save the Earth
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food
- 5 spring cleaning spots everyone forgets
- 5 reasons to look forward to watching the D-backs this season
- Common virus attributed to spike in head and neck cancers
- 5 signs it’s time to end your timeshare ownership
- 3 most overlooked ways to keep your home healthy
- 6 ways the air in your home could be making you sick
- CrossFit dangers: 5 common injuries and how to deal with them
- Today's radiation treatments offer better success, fewer side effects
- Tips to make watching TV on the patio even better
- What really happens when you donate to a community college?
- Sun and skin cancer: Separating fact from fiction
- 5 critical lifestyle changes for a healthy colon
- What you need to know about Alzheimer's disease in Arizona
- Spring clean your windows like a pro with these 8 tips
- 7 films that should have won best-picture Oscars
- New plumbing technology saves money and improves your home
- Survey shows Arizona CFOs optimistic about 2016
- How chronic pain can affect your love life
- 5 potential warning signs about your child's development