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Stock Prices Tank After Justice Department Decides To Block Airline Merger
The stock prices for American Airlines and US Airways did not take kindly to yesterday’s news that the justice department would try to block the companies’ merger. Tempe-based US Airways watched shares sink 13 percent. American fared much worse. Shares of the Dallas-based airline dropped 45 percent.
Attorney General Eric Holder said the merger would unfairly reduce competition in the industry and lead to higher fares for consumers.