The US Justice Department has said that it believes that the proposed merger between American Airlines and US Airways would result in higher fares and fees, which have been increasing in the country.

The Justice Department a lawsuit to block the merger of American Airlines and US Airways as regulators and industry officials continued to discuss the best way out for the customers.  Analysts have said that American will not be able to compete with giants, United Airlines and Delta Air Lines, as it tries to recover from bankruptcy protection.

A new report by the Government Accountability Office had said that the proposed merger between American Airlines and US Airways is set to reduce the level of competition at a large number of airports in the country.  The report said that the merger would reduce competition in more number of airports than any merger before.

American and US Air have claimed that the merger would only impact a few number of airports as they overlap on only 12 nonstop routes.  The proposed merger would create a leading passenger airline and it comes after significant combinations including the mergers of United and Continental in 2010, Delta Air Lines and Northwest in 2008, and Southwest Airlines with AirTran in 2011.