A federal judge has backed New Mexico authorities in their efforts to deny a liquor license to US Airways. The ruling means the airline may not serve alcohol while on the ground in New Mexico or flying through the state's airspace. US Airways had argued that states have no authority to regulate on-board liquor service, which is governed by federal law. But U.S. District Judge Christina Armijo disagreed, finding that New Mexico has "concurrent jurisdiction with the federal government over events occurring in its airspace." US Airways had no immediate comment on plans for an appeal.

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