Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

AMR-US Airways Merger Deadline Extended as U.S. Suit Fought

A US Airways Group Inc. airplane, center, sits flanked by AMR Corp.'s American Airlines' jets at a gate at Dallas Fort Worth Airport in Fort Worth, Texas. Photographer: Mike Fuentes/Bloomberg
A US Airways Group Inc. airplane, center, sits flanked by AMR Corp.'s American Airlines' jets at a gate at Dallas Fort Worth Airport in Fort Worth, Texas. Photographer: Mike Fuentes/Bloomberg

Sept. 23 (Bloomberg) -- American Airlines and US Airways Group Inc. agreed to extend the deadline for completing their $14 billion merger until at least Jan. 18 as the carriers fight a U.S. antitrust lawsuit to block the combination.

The boards of American parent AMR Corp. and US Airways approved moving the deadline from the original Dec. 17 date, according to a regulatory filing today. If there is a favorable order from the court on or before Jan. 17, the companies have an additional 15 days to finish the deal.

The tie-up, which would let American exit bankruptcy protection, is on hold pending resolution of the U.S. Justice Department’s suit. The airlines say the new American would have the heft to compete with larger Delta Air Lines Inc. and United Continental Holdings Inc., while the U.S. says the merger would hurt consumers by raising fares and curbing competition.

Both companies “remain committed to completing this combination to create the new American,” Chief Executive Officers Doug Parker of US Airways and Tom Horton of American said in a statement. “Our focus is on mounting a vigorous defense and winning our court case.”

US Airways fell 0.2 percent to $18.86 at the close in New York. AMR gained 0.8 percent to $3.95.

Parker, 51, would be CEO of the combined carrier, which will keep the American name and its headquarters in Fort Worth, Texas. Horton, 52, would serve as chairman until the first annual meeting of the new American.

American and Tempe, Arizona-based US Airways also said they amended the merger agreement to drop a $20 million severance package for Horton after the judge in American’s bankruptcy case challenged the amount. American’s lawyers had agreed to the change earlier this month.

The antitrust case is U.S. v. US Airways Group Inc., 13-cv-01236, U.S. District Court, District of Columbia (Washington). The bankruptcy case is In re AMR Corp., 11-bk-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.