The proposed merger between AMR Corp.’s American Airlines and US Airways Group Inc. would increase fares, reduce service to smaller communities and make it more difficult for low-cost carriers to compete, two consumer advocates said in testimony for a Senate hearing.

"The proposed deal raises significant competitive issues that could result in harm to consumers," Diana Moss, vice president of the American Antitrust Institute, said in prepared testimony for a Judiciary Committee hearing today. The institute is a Washington non-profit group that promotes consumer rights.

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