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The Boston Globe

Business

US files lawsuit against airline merger

Union of American Airlines, US Airways had been expected to be easily approved

The federal government filed a lawsuit Tuesday to block the proposed merger of American Airlines and US Airways, asserting that the deal would cause “hundreds of millions of dollars of harm to American consumers annually” due to decreased competition and increased prices.

The lawsuit, filed in federal court in Washington by the Department of Justice and the attorneys general of six states and the District of Columbia, surprised many industry analysts, who had expected the merger to sail through the approval process.

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