U.S. blocks merger between American and U.S. Airways considering that rates would rise

U.S. Airways and American Airlines have today received a surprise setback in their plans to merge, after the U.S. Justice Department decided to block the merger between the two airlines and filed a civil antitrust lawsuit on the grounds that the union of the two airlines Americans could present competition concerns.

In an official statement, said that the merger, which would create the world’s largest carrier valued at 11,000 million dollars, reduced «substantially» competition for commercial air transport in local markets in the U.S. and as a result the payment of «higher rates» by the passengers, who receive fewer services.

Therefore, the Department of the Antitrust Division of the Justice Department, along with the District of Columbia and the attorneys general of Texas (where the headquarters of American), Arizona (where the headquarters of U.S. Airways), Florida, Pennsylvania, Tennessee and Virginia, has filed a lawsuit in the Court of Columbia in order to preserve existing competition, that with the merger of the two airlines would be eliminated.

The U.S. attorney general, Eric Holder, said that air travel is «vital» to U.S. million flying for business or pleasure, and stresses that oppose this merger, the Justice Department is telling its citizens » deserve the best «.

«This operation would mean that consumers will pay the price with higher rates, higher fares and lower choices. This measure proves our determination to fight for the interest of consumers by ensuring a strong competition in the market, «he added, as recorded by Europa Press.

According to the Department of Justice, passengers last year spent more than 70,000 million dollars in fees to fly across the United States. It also ensures that major airlines have collectively increased their rates in recent years have imposed new and higher taxes and reduced the service offered.

«If this merger goes through, even a small increase in the bills, the billing of fees for suitcases or changes would result in damage to hundreds of millions of dollars for American consumers. Both airlines have declared that they can succeed independently and consumers deserve the benefit of maintaining competition, «said Assistant Attorney General, Bill Baer.

It is recalled that last week the European Commission (EC) approved the merger with conditions among U.S. airlines in concluding that the commitments made by the parties protect free competition in the European Economic Area