AMR Corp.’s plan to exit bankruptcy protection by merging its American Airlines (AAMRQ) with US Airways Group Inc. (LCC) is scheduled to go before a judge two days after the U.S. sued to block the deal as a threat to consumers.
Lawyers for AMR are due to appear in U.S. Bankruptcy Court in Manhattan today to seek approval of a reorganization plan that hinges on combining the two airlines into the world’s largest carrier. The Justice Department sued both companies Aug. 13 to prevent the transaction, saying its anticompetitive effects would lead to higher airfares.
Before the suit, American hoped the hearing before U.S. Bankruptcy Judge Sean Lane would be the “final episode” in its Chapter 11 reorganization, Joe Sims, an attorney for the airline, said on a conference call with reporters yesterday.
“It’s not going be now, so they will deal with that,” said Sims, of the Jones Day law firm. “They’ll adjust and continue as they have been.”….