The marriage between US Airways and American Airlines is a no-go. The U.S. Department of Justice has filed a lawsuit to block the planned merger between the two airlines, which would create the world's largest carrier. The reason is that the move would undermine "competition in local markets."
Washington's rejection joins that of six state attorneys general, who oppose the $11 billion deal. The merger plan was announced in February. The deal would create a group with 6700 daily flights and annual revenue of $40 billion.
Also failing to take off on the stock market this time are US airline stocks. US Airways is in free fall, falling 8,24 percent, its biggest decline since June 2012. American Airlines fared worse, suspended due to excessive declines, plummeting with a theoretical decline of 47,5 percent. Also suffering are United Continental Holdings (-5,9 percent), Delta Air Lines (-7,5 percent), and Southwest Airlines (-3,1 percent).
