American Airlines faces another hurdle in merger battle
American Airlines Inc is set for a hearing that may finally let the company exit bankruptcy and proceed with its merger with US Airways Inc. However, the airline was slapped with another private lawsuit claiming the merger would violate antitrust laws. This was according to a report published by The Dallas Morning News.
American, AMR, and its subsidiaries filed for Chapter 11 bankruptcy on November 29, 2011. On August 13, 2012, the Justice Department and other US states filed a lawsuit alleging the merger would break antitrust laws and reduce competition. A tentative settlement with the government allowed the Texas-based carrier to proceed with the merger. The company is aiming for a December 9 exit from bankruptcy, the report said.
However, the merger faced another roadblock in the form of a class-action lawsuit with the same allegations as the Justice Department's case. Attorneys Joseph Alioto and David Cook filed the said suit on behalf of several dozen individuals. Alioto and Cook filed a request to block the merger while this lawsuit is being resolved.
US Bankruptcy Judge Sean Lane will decide on the request on Monday, The Dallas Morning News reported.