American Airlines and US Airways will close their proposed merger by Dec. 9, after their revised plan was approved by the U.S. Bankruptcy Court for the Southern District of New York on Wednesday, Nov. 27.
Photo, courtesy of American Airlines.
The revised merger plan includes concessions promised to the U.S. Department of Justice (DOJ) in exchange for antitrust approval. Concessions include divesting 52 slot pairs at Washington, D.C.'s Ronald Reagan National Airport and 17 pairs at New York's LaGuardia Airport. Both airlines will also divest two gates and supported facilities at Boston Logan International Airport, Chicago O’Hare International Airport, Dallas Love Field, Los Angeles International Airport and Miami International Airport.
Despite the divestitures, American expects to generate more than $1 billion in annual revenues beginning in 2015.
According to a statement from American, the merger is still subject to approval of the settlements by the U.S. Bankruptcy Court, however the carrier still expects to complete the merger by Dec. 9.
"We are pleased to have this lawsuit behind us and look forward to building the new American Airlines together," said Doug Parker, chairman and CEO of US Airways.
Under the new merger, which will keep the name American Airlines, Parker will serve as CEO and Tom Horton, CEO of American parent company AMR, will serve as chairman of the board for the combined airline.