U.S. bankruptcy judge Sean Lane ruled Wednesday that American Airlines and its parent AMR Corporation (OTCMKTS:AAMRQ) can exit bankruptcy and go ahead with their planned merger with the US Airways Group Inc (NYSE:LCC). Judge Lane also approved their antitrust settlement with the Department of Justice, reports the Associated Press.
American Airlines-US Airways deal clears all hurdles
Sean Lane also rejected the San Francisco attorney Joseph Alioto’s request. Alioto had requested for a temporary restraining order. He had filed a civil antitrust lawsuit on behalf of 40 plaintiffs to prevent the merger. Joseph Alioto had asked judge Lane for a temporary restraining order as his suit went through trial. The 40 plaintiffs whom Alioto represented were arguing that the proposed merger was anti-competitive. After their merger, just three companies will have a more than 80% share in the U.S. airline industry. Judge Sean Lane’s decision cleared all legal hurdles for the two airlines to merge. American Airlines and US Airways Group Inc (NYSE:LCC) expect to complete their marriage on December 9.
Revival of American Airlines
The American Airlines-US Airways Group Inc (NYSE:LCC) merger will create the world’s largest airline. The new company will be named American Airlines Group. Its headquarters will remain in Fort Worth. American Airlines Group will trade on the Nasdaq under the ticker symbol AAL. American Airlines Group will have a combined workforce of more than 100,000. It will have more than 6,500 daily flights around the world.
American Airlines filed for bankruptcy in November 2011. The merger was an integral part of its restructuring plan. The two companies officially announced their merger plans in February, 2013. US Airways Group Inc (NYSE:LCC) shareholders approved the proposed merger in July.
AMR Corporation (OTCMKTS:AAMRQ) shares jumped 0.42% to $12.02, while US Airways Group Inc (NYSE:LCC) was down 0.13% to $23.79 at 11:01 AM EST.