On Nov. 27, 2013, a U.S. bankruptcy judge overseeing a bankruptcy proceeding involving AMR Corp. (American Airlines' parent company) approved a settlement with the federal government allowing AMR to complete its merger with US Airways Group Inc. (US Air).
AMR entered bankruptcy in November 2011. In February 2013, AMR announced its proposed acquisition of US Air, valued at approximately $11 billion. In August 2013, the Department of Justice filed a lawsuit in an effort to block the combination over antitrust concerns. In November 2013, the DOJ agreed to allow the deal to proceed if the merged airline divests itself of 138 takeoff and landing slots at seven key airports. DOJ considers those airports key to low-cost airlines such as Southwest and JetBlue.
The bankruptcy court overseeing AMR's bankruptcy rejected claims by airline customers that the merger would cause dramatic ticket price increases. The customers sought a temporary restraining order (TRO) to maintain the status quo while they collected more evidence, but the bankruptcy judge ruled that they had failed to establish irreparable harm—a necessary factor for a TRO.
The bankruptcy judge had already approved the merger under bankruptcy law in March 2013 before the DOJ filed its challenge. In September, he approved AMR's reorganization plan.
When the merger is consummated, the combined airline will offer flights to 336 locations in 56 countries.
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