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….
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