Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Bankruptcy Court Approves American Airlines-U.S. Airways Merger, (Mar 28, 2013)

By Tobias J. Gillett, J.D., LLM.

The federal bankruptcy court in New York granted approval yesterday to the proposed merger between AMR Corp., corporate parent of American Airlines, and U.S. Airways Group.

The two companies issued a joint statement expressing their enthusiasm for U.S. Bankruptcy Judge Sean Lane’s decision.

“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,” the statement read.

Although the bankruptcy court’s decision clears one obstacle, the merger has yet to receive regulatory approval. On March 4, 2013, the U.S. Department of Justice Antitrust Division issued a second request to the parties under the Hart-Scott-Rodino Antitrust Improvements Act for more information, according to an American Airlines announcement. That request extended the waiting period for the merger to thirty days from the date when the airlines substantially complied with the request. The Regulatory Reform, Commercial and Antitrust Law Subcommittee of the U.S. House of Representatives’ Judiciary Committee and the Senate Judiciary Committee’s Antitrust Subcommittee have both held hearings on the merger.

Companies: AMR Corp.; American Airlines; U.S. Airways Group

News: Antitrust