Southwest Seen Overlooked as U.S. Seeks to Block AMR Deal

Southwest Airlines Co. flies more passengers in the U.S. than any other carrier and serves 29 of the 30 largest metropolitan areas. To federal regulators, that’s not enough to be considered an influential industry competitor.

In suing to block the merger of AMR Corp.’s American Airlines and US Airways Group Inc., the U.S. Justice Department erred in deeming Southwest, the biggest discount carrier, too small to sway others’ actions, according to analysts such as Savanthi Syth of Raymond James Financial Inc.