American, US Airways Extend Merger Agreement Deadline
American Airlines parent AMR and US Airways, whose planned merger has been put on hold by the Department of Justice thanks to an antitrust lawsuit filed in August, said on Monday that both parties have agreed to extend the outside date at which either can terminate their merger agreement.
Citing the trial schedule for the Department of Justice litigation, which calls for the trial to begin in late November, the two airlines issued a joint statement that said that their boards of directors and management teams “remain committed to completing this combination.”
The two airlines also said that they are focused on mounting “a vigorous defense” and winning the case, adding that the combined airline will “enhance competition, provide better service to our customers, and create more opportunities for employees.”
The amended Merger Agreement extends the date on which either party can terminate the agreement from December 17, 2013 to January 18, 2014, or, if the court rules in favor of the merger, on the 15th day following the ruling. Should the court rule in favor of the Department of Justice, either party may terminate the agreement five days after the court enters a final (but appealable) order permanently enjoining the merger.
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