Report: Judge Confirms American Airlines Reorganization Plan

U.S. Bankruptcy Court Judge Sean Lane has confirmed American Airline Inc.'s reorganization plan, contingent on regulatory approval, the Dallas Morning News has reported.

At an Aug. 29 hearing, the same judge signaled favor of confirming the reorganization plan (without waiting for resolution of the DOJ suit) were "fairly persuasive," the newspaper reports.

"I'm finding the arguments in favor of confirmation fairly persuasive," Judge Sean H. Lane said from the bench.

American Airlines: Turbulent Times

Such a decision leaves one obstacle - although a big one - to American's proposed merger with US Airways: an antitrust lawsuit filed by the government earlier this month.

That suit filed by the U.S. Department of Justice, six states and the District of Columbia argues that combining American and US Airways would leave four airlines controlling more than 80 percent of U.S. air traffic and drive up prices.

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The Associated Press contributed to this report