U.S. sues over proposed deal between United, Delta at Newark
The federal government wants to block a deal that would increase United Airlines’ grip over Newark Liberty International Airport, saying that it would drive up fares.
Newark serves 35 million passengers a year, and its airfares are already among the highest in the nation.
The Justice Department on Tuesday sued to block a deal that would let United acquire 24 takeoff and landing slots at Newark from Delta Air Lines. Federal officials said the agreement would give United — already the dominant airline at the airport near Lower Manhattan — an even greater competitive advantage that would drive up fares.
“We know from experience what happens when competition is allowed to flourish. This transaction will have the opposite effect. That is why we are seeking this injunction,” Assistant Attorney General Bill Baer, the head of the Justice Department’s antitrust division, said in a conference call announcing the lawsuit.