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Court OKs American Airlines - US Airways MergerMarch 28, 2013 By: Newswire
Reuters reports that AMR Corp, the bankrupt parent of American Airlines, won bankruptcy court approval to merge with US Airways Group Inc. Final approval will create the world's largest airline.
One clause in the merger agreement, Reuters says - a $19.9 million severance package for Tom Horton, AMR's outgoing chief executive - was not approved by the judge at a hearing in U.S. Bankruptcy Court in Manhattan.
Federal Judge Sean Lane said he will issue a written ruling explaining his decision regarding the severance package, which had brought an objection from the Department of Justice and skepticism from Lane at Wednesday's hearing in New York, Reuters said.
Final approval of the merger is expected within months.
We'll be publishing a big update on the merger and the controversy it's generated in the industry later today, so stay tuned to www.travelagentcentral.com for further details.