AMR Corp.’s American Airlines and US Airways Group Inc. are seeking a trial of the government’s lawsuit to block their $12.1 billion merger as early as Nov. 12, while the Justice Department is pushing for a February date.
American Airlines’ chances of leaving bankruptcy as a strong competitor with its biggest peers were left in jeopardy yesterday when the U.S. Justice Department sued to block a merger with US Airways Group Inc.
The board representing AMR Corp.’s American Airlines pilots reached a transition agreement that removes another hurdle to a combination with US Airways Group Inc. that would form the world’s largest carrier.
A group of AMR Corp. bondholders with about $885 million in debt has told pilots that its support for a stand-alone American Airlines after bankruptcy would be conditioned on the appointment of a new board.
Pilots for AMR Corp.’s American Airlines asked a U.S. bankruptcy judge to suspend his order allowing the carrier to throw out their labor contract and impose cost cuts while their appeal is considered.
AMR Corp.’s American Airlines, the third-largest U.S. airline, asked a bankruptcy judge to let it void labor contracts with union workers after failing to reach agreements on $1.25 billion in annual cost reductions.