The combination of American's parent AMR Corp <AAMRQ.PK> and US
Airways Group Inc <LCC.N> would create the world's largest carrier
and would follow last month's resolution of antitrust objections by
the U.S. Department of Justice.
That settlement requires the airlines to shed some landing slots and
gates at several airports, including in New York and Washington,
D.C., and had won approval on November 27 from U.S. Bankruptcy Judge
Sean Lane, who oversees AMR's Chapter 11 case.
AMR has said it hoped to complete the merger on Dec. 9.
"We look forward to closing our merger with US Airways on Monday,"
American Airlines spokesman Mike Trevino said in a statement.
In their appeal in the U.S. District Court in Manhattan, plaintiffs
led by California resident Carolyn Fjord urged that Lane's order be
put on hold, saying they would face irreparable harm if the
"anticompetitive" merger went forward.
According to a Wednesday court filing, the consumers and travel
agents said combining the carriers could result in fewer flights and
available seats, higher fares, poorer service and lower competition,
and would be hard to undo once completed.
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At a Friday hearing, Chief Judge Loretta Preska of the U.S. District
Court in Manhattan said the plaintiffs had failed to show
"I adopt Judge Lane's rendition of the law in all respects," she
Joseph Alioto, a lawyer for the consumers and travel agents,
indicated at the hearing he would seek an appeal. But Preska denied
Alioto's request to suspend the effect of her ruling pending an
The case is Fjord v. AMR Corp et al, U.S. Bankruptcy Court, Southern
District of New York, No. 13-ap-01392. The main bankruptcy case is
In re: AMR Corp et al in the same court, No. 11-15463.
(Reporting by Nate Raymond and Jonathan
Stempel in New York; editing by Gary Hill, Krista Hughes and David
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