Airline merger opposed by government

The government is looking to block a proposed merger between American Airlines and US Airways. CNN's Rene Marsh reports.

It would be the largest airline in the world,but Tuesday before the 11-billion-dollar deal could take off,the justice department filed a lawsuit challenging the merge of American airlines and US airways,saying passengers would lose big.Consumer advocates agree.

Cause you've been saying all along that this should not happen.

This is really good news for consumers,because we are gonna lose an incredible amount of competition within the United States.And when we lose competition that's never good when it comes to price control.

The justice department use a flight today to illustrate what's at stake.They say this round trip from Miami to Cincinnati cost 471 dollars on US airways.And 751 dollars on American.If the two airlines merge,the justice department says US airways aggressive discounting could disappear.Opponents say it will reduce competition,cut service and increase fees.At airports like Reagan National where the two carriers operate,a combined airline would control 69% of the take-off and landing slots.In a joint statement,the airlines say they plan to fight the lawsuit,dayspring the CEOS,defend the merger.

By putting two networks together,we will provide better service,more effecient service to consumers.

This is creating an enhanced competition in the US,because today you have two really big global airlines,United and Delta,and that creates a third as a competitive counter-balance to that.

The justice department says the companies can thrive on their own.

So they are gonna do just fine.They are not gonna go way and be reduced to nothing.

All right,the justice department thinks they don't have problem with airlines to make money,they have a problem with reduce competition.It says that the two airlines compete directly on thousands of rows.