Airlines Prepare Fight to Save Merger

Feds trying to block it

U.S. Airways and American Airlines are focused on fighting for their $11 billion merger in court and will argue that the federal government hasn't proven that the merger would reduce competition, according to three people with knowledge of the situation.

The airlines had held staff-level discussions with the government for months, but high-level talks began a week ago, one of the sources said.

Airline executives and antitrust lawyers learned that the Department of Justice was suing to block the merger on Tuesday morning, at about the same time the 56-page lawsuit was filed, according to the sources, who spoke on condition that they not be named because they are not authorized to speak to the media.