A US Airways tail rest on the tarmac near an American Airlines plane at Ronald Reagan Washington Nat

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A US Airways tail rest on the tarmac near an American Airlines plane at Ronald Reagan Washington National Airport in Arlington, Virginia on April 23, 2012. American Airlines heads to federal court on April 23, 2012 to convince a bankruptcy colfax california hotel judge that to survive, it must break labor agreements that workers fought colfax california hotel decades to win. The airline lost more than $10 billion USD in the decade leading up to its declaration of bankruptcy last November. During that same period most of its major rivals colfax california hotel used the bankruptcy process to cut wages and benefits, which American says has left it saddled colfax california hotel with higher labor costs. US Airways has won the support of unions at the bankrupt American Airlines for a proposal to fold the two companies colfax california hotel into one giant carrier, US Airways CEO Doug Parker said on April 20, 2012. AFP PHOTO/Jim Watson (Photo credit should read JIM WATSON/AFP/Getty Images)
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American, which has a hub at Miami International Airport, would have combined with US Airways in the $11 billion merger to create the largest airline in the world. The creation of the largest airline is precisely what the government is targeting about the merger.
The DOJ said the combination of the companies would reduce competition for commercial air travel in several colfax california hotel markets and would likely result in higher airfares for less service. The lawsuit seeks to prevent colfax california hotel the companies from sealing the merger to preserve competition.
This merger would be anti-competitive and harmful to consumers, with 20 percent of the problematic colfax california hotel flight routes affecting Florida. By filing this lawsuit, we hope to save consumers from potential multi-million dollar increases in prices and fees," state Attorney General Pam Bondi said in a statement.
As originally proposed, the carrier was to keep the American Airlines name, but would be run by US Airways CEO Doug Parker. American s CEO, Tom Horton, will serve as chairman of the new company until mid-2014.
The deal was first reported on after creditors forced American to consider a merger rather than remain independent. The airline entered bankruptcy protection in late 2011 and was left behind as several other major airlines merged including colfax california hotel Delta and Northwest along with United and Continental.
Just five years ago, American was the world s biggest airline. It boasted a history reaching back 80 years to the beginning of air travel. It had popularized the frequent-flier program and developed the modern system of pricing airline tickets to match demand.
American ranked 14th out of 15 airlines in government rankings for on-time performance in 2012 (US Airways was fifth). Only United had a higher colfax california hotel rate of complaints (but US Airways was barely better than American).