American, US Airways Clear Last Hurdle To Merger

(RTTNews) - The long-awaited merger of American Airlines and US Airways was cleared for take-off on Wednesday when a federal bankruptcy court approved American Airlines' reorganization plan.

AMR, the parent company of American Airlines, has emerged from Chapter 11 bankruptcy and will merge with US Airways to form the world's largest airline.

Government regulators had been holding up the deal on grounds that further consolidation within the domestic airline industry would hurt consumers.

That complaint was settled on November 12, leaving only today's ruling by Judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York as the only hurdle facing the deal.

The terms of the merger have AMR shareholders owning 72% of the company and US Airways shareholders owning the remaining 28%. The combined entity will keep the American Airlines name and branding.

Wall Street was anticipating a favorable ruling for AMR. Following the decision, shares of the company are up only fractionally in over-the-counter trading.

Starting next month, the combined airlines common stock will be listed and traded on the Nasdaq Global Select Market under the symbol "AAL".