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US Airways, AA, extend merger deadline

Sept. 23, 2013 at 11:50 AM   |   Comments

DALLAS, Sept. 23 (UPI) -- American Airlines and US Airways said Monday they had extended a merger deadline, while the U.S. Department of Justice sues the companies to block the deal.

"The boards and management teams of [American Airlines parent company] AMR and US Airways remain committed to completing this combination to create the new American, and the extension of this outside date is a reflection of this commitment," said the chairmen and chief executive officers Tom Horton of American and Doug Parker of US Airways.

The Dallas Morning News reported that the original deadline for a merger was Dec. 17. After that, if a deal was not signed by then, either party could pull out of any commitment.

The antitrust trial, however, is scheduled to begin Nov. 25. There is a chance that trial will not be concluded as the Dec. 17 deadline passes.

The airlines have set out new parameters for the deal, announcing that either party could now terminate the deal on Jan. 18, 2014, or five days after the courts enter a final order permanently prohibiting a merger, even if there is a legal option of an appeal.

If the court rules in favor of the merger, either party can back out of a deal is not struck within 15 days after the conclusion of the trial, the newspaper said.

Topics: Doug Parker
© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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