The US Department of Justice (DOJ) and attorneys general of Arizona, Florida, Pennsylvania, Tennessee, Texas, Virginia and the district of Columbia filed suit August 13, 2013 to stop American Airlines and US Airways from merging. The proposed $12 billion merger would combine the two airlines into the world's largest carrier. The lawsuit alleges that the merger would reduce competition. It would "raise prices, impose new or higher baggage and other ancillary fees, and reduce capacity and service." Managers see the merger as necessary in an increasingly competitive market. The airline industry's business model is challenging. Since the 1980s, more than 40 U.S. airlines have declared bankruptcy. But, unlike airlines in earlier mergers, both American and US Airways are profitable. Cheryl Hall of the Dallas Morning News interviewed Robert Crandall the retired chairman, president, and CEO of AMR, parent company of American Airlines (August 14, 2013, D1, 10D). Crandall told Hall the following. "This is another indication that the U.S. government does not know the first thing about the aviation industry. The government made a mistake when they allowed US airlines to send their airplanes overseas for maintenance, thus sacrificing tens of thousands of middle-class maintenance jobs in the U.S. And they made a mistake when they permitted Delta to absorb Northwest and permitted United to merge with Continental because they created monolithic carriers that require monolithic competitors. Without a merger, neither (American or US Airways) in the very long run can make it -- be sure to emphasize in the very long run . Ten years down the road, if American and US Air don't succeed in creating greater mass and more ubiquity, they can't compete effectively against United and Delta." The merger would have left just four large companies serving the U.S. airline market. Does the merger hurt consumers? All managers study the business environment, with political being one of the most important elements. Did the managers under estimate the government issue? How could the relationship with the Justice Department have been managed more carefully?