American bankruptcy decision before Thanksgiving

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A bankruptcy court judge will rule on a revised reorganisation plan for American Airlines before Thanksgiving, standing as the last approval necessary for the carrier’s planned merger with US Airways.

Judge Sean Lane of the US Bankruptcy Court for the Southern District of New York will rule on the plan, which is opposed by consumers represented by antitrust attorney Joseph Alioto, within 24h to 36h, according to reports from the courtroom.

“I don’t plan on thinking about this over Thanksgiving,” he says. Thanksgiving is on 28 November.

The revised plan includes the concessions that American and US Airways agreed to with the US Department of Justice (DOJ) in return for antitrust approval of their merger. These include divesting 52 slot pairs at Ronald Reagan Washington National airport and 17 pairs at New York LaGuardia, as well as two gates and related facilities at Boston Logan International, Chicago O’Hare International, Dallas Love Field, Los Angeles International and Miami International airports.

Bankruptcy court approval is the last sign off needed before the airlines can close their merger, which was announced this past February.

Lane is widely expected to approve the reorganisation plan.