US AIrways and American Airlines merger deadline sought extended

By Marc Castro

Sep 11, 2013 12:03 PM EDT

The merger of the US Airways Group Inc LLC and American Airlines parent AMR Corp both have said they would ask their respective boards to extend the termination date of the proposed merger because of uncertainty to the result of a government lawsuit. The USD 11 billion merger was reported by the Wall Street Journal, citing anonymous sources.

Last August 13, the US Justice Department filed a lawsuit to block the deal by saying that the merger would be in violation of antitrust laws as the merger would result in more expensive airfares and its related fees.

AMR CEO Tom Horton and US Airways CEO Doug Parker, responding to questions from members the AMR creditor's committee for its bankruptcy case, said they intended to move the termination date to December 17, should the merger fail to receive regulatory approval. 

The new termination date was not determined.

Both companies have determined the deal is important to the well-being of American Airlines, after its parent AMR Corp have been operating under Chapter 11 protection since 2011. For its part, US Airways said that the said deal was legal and should be allowed to push forward.

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