WASHINGTON • The federal government is challenging the proposed merger of American Airlines and US Airways, saying it would cause “substantial harm” to consumers by leading to higher fares and fees.
The U.S. Justice Department, joined by the attorneys general of six states, filed a lawsuit to block the merger Tuesday in federal court in Washington, D.C.
The airlines said the government’s conclusions were wrong, and they vowed to use “all legal options” to fight back.
The government’s challenge t...
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