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Judge Refuses To Block New American Airlines Merger in Consumer Lawsuit

Dec 06, 2013 5:00 pm

Skift Take

Given the volatility of the merger and bankruptcy process to date, there were undoubtedly some sighs of relief at American and US Airways when this latest court ruling went down.

— Dennis Schaal

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A New York judge has refused to block a merger between American Airlines and US Airways, saying a bankruptcy judge was right to reject the arguments made by a lawyer for some consumers.

U.S. District Judge Loretta Preska ruled Friday that U.S. Bankruptcy Judge Sean Lane was “correct in all respects” in deciding last week to let the merger proceed. She rejected arguments of imminent harm to consumers put forth by San Francisco attorney Joseph Alioto. She also refused to stay the effect of her ruling while Alioto appeals.

American is owned by AMR Corp. and is based in Fort Worth, Texas. It says it plans to complete the merger with Tempe, Ariz.-based US Airways Group Inc. on Monday. The merger means American, United, Delta and Southwest will control more than 80 percent of the U.S. market.

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