American Airlines' deal with US Airways Group Inc. could be derailed by federal regulators. If the regulators would succeed in derailing the deal, JetBlue Airways Corp. might become the next target for a takeover deal for AMR.

The US Department of Justice filed a case that would block the intended merger of American Airlines and US Airways. The Department said that the merger would only result to reduced competition and increase fares.

However, if the USD12.1 billion deal would be blocked, both companies could turn their sights to JetBlue. According to Eagle Asset Management Inc, the size of JetBlue would make it less likely to get antitrust issues. Eagle Asset Management is a shareholder at JetBlue, which had also held a base in New York, the busiest air travel market.

JetBlue Airways has a current market value of USD1.8 billion. The company had been seen to be vulnerable as its shares had trailed an index of the largest US airlines. This was according to a data compiled by Bloomberg.