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.
- The best places to celebrate Fall in Phoenix
- Infamous athletes who did the most time for their crimes
- 2016 baseball highlights, bloopers and blunders
- See how CFOs really feel about business in the Valley
- The best television shows on the internet
- A preseason guide to avoid holiday weight gain
- The 5 worst things you could do for your roof
- 6 coolest things brewing in Arizona
- The virus that keeps head and neck cancers on the rise
- State Fair ‘Kid Reporter’ has all the angles covered
- 4 important things to know about timeshare maintenance fees
- Signs of delayed car crash injuries
- The truth about sports concussions
- The Alzheimer's epidemic: Facts you need to know
- The season is here, keep your Fantasy Football team strong all season
- 8 TV shows you can't miss this fall
- Football is here: 6 tips to make this your best season ever
- Gameday recipes and beers to match
- 6 reasons the Cardinals are driven to win the Super Bowl
- The Pac-12 football season nears kickoff
- Tips to get ready for a pain-free golf season
- Protect your family with these 7 home security features
- How to train like an Olympic swimmer
- 2016 Olympics: A guide to must-see TV events
- The bride's guide to feeling your best on your wedding day
- Deciding when you need knee surgery
- Celebrating Fourth of July is much cooler in these AZ towns
- Top ten road trip bathrooms in America
- Six things causing a pain in your neck
- 5 things to make your summer move easier