Thursday, March 28, 2013
American Airlines Merger With US Airways Approved by Bankruptcy Judge
AMR Corp., parent company of American Airlines, received approval for its merger with US Airways from a bankruptcy judge in New York Wednesday.
The approval moves American Airlines a step closer to finishing its reorganization plan and exiting bankruptcy protection. The Ft. Worth, Texas-based carrier announced its merger with US Airways last month, a little over a year after it filed for bankruptcy protection in November 2011.
“Judge Lane’s approval of the merger agreement today allows us to continue progressing forward with our planned merger and we are gratified to know that he considers the merger an ‘excellent result’ for stakeholders,” AA and US Airways said in a joint statement Wednesday.
American will still be under bankruptcy protection until after it files a plan of reorganization, and receives creditor approval for the plan. The airline expects to exit its bankruptcy restructuring process by the third quarter of 2013.
The judge approved the merger but deferred a ruling on a $20 million severance package for AMR Corp. CEO Tom Horton.
The two airlines are also still awaiting approval for the merger from U.S. Airways shareholders, the Department of Justice and other international regulatory officials as well.
The merger will create the world’s largest airline with a projected 6,700 daily flights and annual revenue of nearly $40 billion. More