Business groups ask U.S. to settle U.S. Airways, American suit

Reuters

WASHINGTON, Oct 24 (Reuters) - Chambers of commerce from 26U.S. states and cities have urged the U.S. Justice Department tosettle its lawsuit opposing U.S. Airways' proposedmerger with American Airlines.

In a letter released on Thursday, the chambers of commerceurged Attorney General Eric Holder to settle its lawsuit againstthe airlines, saying the combined carrier would be a moreeffective competitor against rivals like Delta, United and Southwest.

Most of the chambers that signed the letter were from areasserved by at least one of the two airlines. "This combinationwill benefit the U.S. economy, the airline industry and localcommunities throughout the United States," they wrote.

The Justice Department filed a complaint against thecompanies in August to stop the deal, saying it would lead tohigher prices.

The case at the U.S. District Court for the District ofColumbia is No. 1:13-cv-1236.

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