Bankruptcy judge OKs American-US Airways merger

[brooklynite]

Source: CNN

A federal bankruptcy judge gave approval on Wednesday for US Airways and American Airlines to proceed with their planned merger, but declined to authorize a proposed severance package worth nearly $20 million for the CEO of American's bankrupt parent company.

US Airways and American Airlines announced plans last month to join forces in an $11 billion deal to create the world's largest airline. The companies said in a joint statement Wednesday that the decision from Judge Sean Lane "allows us to continue progressing forward with our planned merger, and we are gratified to know that he considers the merger an 'excellent result' for stakeholders."

A point of contention ahead of Wednesday's hearing was the $19.9 million severance package -- half cash and half stock in the new company -- proposed for Thomas Horton, CEO of American parent AMR. Doug Parker, the current CEO of US Airways, is set to hold the same position at the combined company, while Horton will serve as non-executive chairman and will step down from that position at some point next year.

Read more: http://money.cnn.com/2013/03/27/news/companies/american-us-airways/index.html

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40 years ago we had the big three: United, American and TWA. Today we have the big three: United, American and Delta. progress.....

[NutmegYankee]

1. American Airlines, US Airways Merge To Form World's Largest Inconvenience

FORT WORTH, TX—American Airlines and US Airways stunned the aviation industry Thursday upon announcing the two air travel titans have combined in an $11 billion merger that sources say will unite the industry powerhouses into the world’s largest and most complete pain in the ass. “Today we embark upon a bold and unprecedented new venture into customer frustration,” American CEO Tom Horton said of the historic alliance, which analysts predict will pose an immediate threat to rivals United and Delta in the air travel industry’s key areas of flight delays, lost luggage, and useless customer service.

http://www.theonion.com/articles/american-airlines-us-airways-merge-to-form-worlds,31302/

[dballance]

3. Thanks. That's A Riot.

I'll have to send it to my friend who's a pilot for AA.

[BlueCollar]

4. and in further developments American will acquire Carnival Cruises

Service expected to improve...

[neoclown]

2. $20 Million severance package?!?!

For plunging your company into bankruptcy?!?! Yeah, and it was the unions that were pulling down the company...

If I got $20 million every time I failed, I would have taken more chemistry classes in school.

[IthinkThereforeIAM]

5. How soon until we only have one "Aeroflot"...

eom.

[lonestarnot]

6. Very.