In a US regulatory filing, American Airlines and US Airways Group Inc. had agreed to move the deadline of the completion of their USD14 billion merger to January 18 of next year. The move was done as both companies prepped to fight the antitrust lawsuit filed by US authorities.
The lawsuit had blocked the merger between both airlines. The original deadline was set on December 17 this year. The merger was said to allow American parent AMR Corp. leave the bankruptcy protection of the US. The US Justic department claimed that the merger of the two airlines would hurt the consumers in the end in terms of prices and limited products availabilities by reducing competition. The airlines argued that the merger was simply a strategic move to compete with bigger airline rivals United Continental Holdings Inc and Delta Air Lines Inc.
Should the merger be finalized without a hitch early next year, the combined airlines will have US Airways Chief Executive Doug Parker as its new chief executive and American Chief Executive Officer Tom Horton as interim chairman. The combined airlines merger will retain the name of American.
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