American Airlines, US Airways Extend Merger Agreement

Monday, September 23rd 2013, 8:54 am
By: News On 6

In a joint statement from AMR and US Airways Group Monday, the two airlines say they have agreed to extend their merger agreement because of a federal trial in November.

Statement from Tom Horton, Chairman and CEO of AMR and Doug Parker, Chairman and CEO of US Airways:

"The Boards and management teams of AMR and US Airways remain committed to completing this combination to create the new American, and the extension of this outside date is a reflection of this commitment. Our focus is on mounting a vigorous defense and winning our court case so the new American can enhance competition, provide better service to our customers and create more opportunities for our employees."

The original date for the merger was December 17, 2013. According to the new agreement, if there is a favorable order from the court on or before January 17, 2014, the companies have an additional 15 days to finish the deal.

The U.S. Department of Justice filed suit to stop the merger, saying the American Airlines/US Airways deal would create the world's largest airline, a move it says would be bad for travelers.

American Airlines: Turbulent Times

Meanwhile, the two airlines say it's not fair for the government to oppose their merger when they say it has approved other airline mergers.

The two carriers are asking a federal judge to order the Justice Department to turn over documents about the four previous airline mergers. That includes the DOJ's 2010 approval of the merger between United and Continental.