Court Approves AMR – US Airways Merger

In Carolyn Fjord et al. v. AMR Corp. et al., Southern District of New York Judge Loretta A. Preska affirmed a bankruptcy judge’s decision to allow a merger between American Airlines and U.S. Airways to move forward.  In their suit, a group of customers claimed that the merger would drive prices up and service down and would make planes more crowded.  An earlier ruling by the bankruptcy court shut down the customers’ bid to stop the merger, so the customers appealed to the District Court.  Judge Preska rejected the customers’ appeal, saying she fully supported the bankruptcy judge’s decision to allow the merger to proceed.  Last month, the U.S. Department of Justice approved the merger, as long as the combined airline agreed to hand over a number of departure gates and takeoff and landing slots at several key airports to low-cost carriers.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*