Delta/US Air to sue U.S. gov't over airport slots

WASHINGTON, July 2 (Reuters) - Delta Air Lines (DAL.N) and US Airways (LCC.N) said on Friday they will bring a lawsuit challenging conditions the U.S. government imposed on a proposal to swap dozens of East Coast airport slots.

The companies said in a regulatory filing they would not proceed with the exchange of assets, which involved government-regulated slots -- or takeoff and landing rights -- at New York's LaGuardia Airport and Washington's Reagan National airport.

Both sought the deal in August 2009 to strengthen operations where they concentrate most on business travel. US Airways wanted to beef up its Washington operations, while Delta was looking to focus more heavily in New York.

Federal Aviation Administration officials approved the initial plan, but required them to relinquish a number of their slots to expand access at the crowded airports to other carriers.

US Airways and Delta countered with a compromise proposal incorporating some slot divestment, which the government rejected.

"Delta and US Airways are seeking judicial review of the FAA decision," the carriers said. (Reporting by John Crawley; Editing by Steve Orlofsky)