A Wall Street Journal blog reported that US Airways Group and American Airlines parent AMR suffered setbacks Thursday in preparations for the Justice Department’s case against their proposed merger.
JetBlue Airways may become a takeover target for American Airlines or US Airways Group if federal regulators succeed in derailing AMR’s merger, Bloomberg reported.
Bloomberg reported AMR, the parent company of American Airlines, said in a court filing, that waiting to resolve the government’s antitrust case to block AMR’s merger with US Airways would be “destabilizing.”
American Airlines and US Airways Group filed a motion to set a trial date and a supporting brief in the U.S. District Court for the District of Columbia in connection with the lawsuit filed by the DOJ.
Reuters reported that bankruptcy judge Sean Lane held off approval of a restructuring plan for American Airlines, citing a U.S. government challenge to its proposed merger with US Airways.
The WSJ reported that the DOJ challenged the $11 billion merger of American Airlines and US Airways Group. The lawsuit filing said the deal would hurt airline competition due to the recent waves of consolidation.
Bloomberg reported that US Airways and American Airlines will not know if their $11 billion merger will pass U.S. antitrust review prior to the August court hearing regarding American’s reorganization plan.
Bloomberg reported that AMR, the parent of American Airlines, received court approval to borrow as much as $3.25 billion towards its emergence from bankruptcy.
American Airlines and US Airways said that each company received a request for additional information from the U.S. Department of Justice in connection with the proposed merger of the two airlines.