Today, Judge Sean Lane of the U.S. Bankruptcy Court for the Southern District of New York approved American Airlines’s reorganization plan to exit bankruptcy protection, predicated on approval for the proposed American Airlines-US Airways merger.
Last month, many were caught by surprise when the Department of Justice and a handful of states filed suit in an attempt to block the merger. This puts the Obama Justice Department to the left of the European Commission, which had approved the merger. I previously highlighted some of the absurdities of the DOJ’s case and noted that President Obama risks alienating his labor union allies by proceeding with its foolish attack on the airlines.
The airlines are also looking to extend their merger deadline from December 17 to a future date yet to be determined, signaling that American and US Air believe they will likely win their fight with the Justice Department. The DOJ originally tried to push back the start date of the trial on their lawsuit until March, in a clear effort to derail or at least dramatically increase the costs of the merger……To Read More….