Our office remains open to serve your important legal needs during these turbulent and challenging times. We are happy to schedule client consultations and client meetings by telephone or video-conference at your request.
Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Airline merger moves forward after approval from bankruptcy court

Business travelers in Denver and around the nation are taking note of the decision by a federal bankruptcy court to allow AMR Corp. to complete its business transaction with US Airways Group and merge into a single company. AMR is the parent company of American Airlines.

The merger became possible after an agreement was reached between AMR Corp. and the U.S. Justice Department that led to the federal government dropping an anti-trust lawsuit that it filed when the merger between American Airlines and US Airways was announced. The agreement between AMR Corp. and the government requires the newly merged airline to relinquish spots at several major airports in cities like New York and Chicago to ensure a competitive marketplace.

The resolution of the merger dispute will allow AMR Corp. to move forward with a bankruptcy restructuring plan that has been in limbo since the company filed for bankruptcy in 2011. The merger between American Airlines and US Airways will result in the new entity being the largest airline in the world with an estimated value just over $17 billion. Although the federal anti-trust lawsuit has now been settled, there is still a private anti-trust lawsuit pending against the company. AMR Corp. indicated that the merger with US Airways was to be finalized on Dec. 9.

Organizations that are attempting to make major changes, such as opening new locations or merging with another entity, may benefit from a consultation with a legal professional. Attorneys working in the area of business and commercial law may be able to help their clients to protect their interests by structuring a deal that is legally sound and profitable.

Source: FOX, “Bankruptcy Judge Approves AMR Merger Settlement”, Dunstan Prial, November 27, 2013

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