WASHINGTON, Aug. 13 (Xinhua) -- The U.S. Department of Justice on Tuesday filed a civil antitrust lawsuit challenging the proposed merger between U.S. Airways Group Inc. and American Airlines' parent corporation, AMR Corp.
The lawsuit was filed in the U.S. District Court for the District of Columbia, saying that the merger would "substantially lessen competition for commercial air travel in local markets throughout the United States and result in passengers paying higher airfares and receiving less service."
The 11-billion-dollar merger would create the world's largest airline.
"By challenging this merger, the Department of Justice is saying that the American people deserve better," U.S. Attorney General Eric Holder said in a statement. "This transaction would result in consumers paying the price - in higher airfares, higher fees and fewer choices."
The Department also alleged that the vast majority of domestic airline routes had already been highly concentrated and the merger would result in four airlines controlling more than 80 percent of the U.S. commercial air travel market.
The two airlines announced their merger plan in February and have been awaiting regulatory approval.