2 DECEMBER 2013

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Article from BTNews 2 DECEMBER 2013

American Airlines – US Airways update

A US judge on Wednesday last week approved a settlement resolving US regulators' opposition to a merger between AMR and US Airways, allowing the American Airlines’ parent to soon close on a tie-up that will create the world's largest carrier.  American is part of oneworld and a partner of IAG on the North Atlantic.
 
Judge Sean Lane, at a hearing in US Bankruptcy Court in Manhattan, called the settlement "fair and equitable" and said it was in the "best interest" of AMR's creditors in bankruptcy.
 
AMR said in a statement that it will seek to close on the deal by 9 December.  However, a group of consumers that opposes the merger could delay matters by appealing Lane's approval.
 
The US Department of Justice (DOJ) had initially challenged the merger, which was to serve as the basis for AMR's plan to exit Chapter 11 and pay back stakeholders.  The DOJ's antitrust watchdog said the plan could impede competition and drive up ticket prices.
 
The airlines earlier this month agreed to divest takeoff and landing rights and gates at Washington Reagan, New York LaGuardia and several other airports.
 
AMR declared bankruptcy in November 2011, weighed down by staff costs and other debt.  It was the last of the major US carriers to go through a restructuring. www.aa.com

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