American Airlines and US Airways vowed Tuesday to fight the Justice
Department lawsuit that seeks to block their planned merger because of
concerns that travelers would pay hundreds of millions more for fares
and fees.

Investors dumped both stocks after the lawsuit was announced Tuesday
morning. US Airways shares were down $2.46, or 13%, for the day, and
American was down $2.64, or 45%.

The airlines had anticipated merging within months to create the world's
largest airline to better compete against United and Delta airlines. But
the lawsuit that argues travelers would face hundreds of millions of
dollars in higher fares and fees will at least hinder and could block
those plans.

"While shareholders might benefit, creditors might benefit from
consolidation, the fact of the matter is, consumers will get the shaft,"
Bill Baer, assistant attorney general for the antitrust division, told
reporters in a conference call. "The right option here is a full-stop
injunction."

The department argued that the competition -- and lower prices -- would
be lost at more than 1,000 pairs of cities where the airlines compete
with connecting flights.

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Airline service is bad enough already, and further consolidation will
only make it worse.