Judge to Rule in American Airlines Bankruptcy Case Wednesday
Attorneys will gather Wednesday morning at the U.S. Bankruptcy Court in New York to hear the judge’s ruling in the American Airlines bankruptcy case.
Judge Sean Lane is expected to approve the recent settlement with the U.S. Justice Department, and clear the way for AA to merge with US Airways.
Attorneys for the two airlines told the court Monday that the settlement does not change the approved reorganization plan, and Judge Lane is expected to agree.
He’s also expected to rule against a group that filed a separate lawsuit now asking for a temporary restraining order to stall the merger.
Favorable rulings would allow AA to emerge from bankruptcy and close the deal with US Airways early next month.
But then the real work begins, as the two airlines begin the process of becoming the world’s largest airline.
“That’s where the real challenge is at, is putting these two airlines together and rebuilding it into an airline that can compete with United and Delta” says Tom Hoban with the Allied Pilots Association.
The judge will take the bench Wedneday morning at 9 a.m. CST, only two days shy of the two-year anniversary of when AA filed for bankruptcy.