BusinessBusinessmergersamerican airlines bankruptcy

American Airlines, US Airways Merger Approved By Bankruptcy Judge

We're One Step Closer To The World's Largest Airline
Reuters
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An American Airlines jet takes off from Washington's Ronald Reagan National Airport early in the morning of Thursday Nov. 21, 2013. This weekend marks the beginning of the busy holiday travel season. (AP Photo/J. David Ake)

NEW YORK, Nov 27 (Reuters) - A judge on Wednesday approved a settlement resolving U.S. regulators' opposition to a merger between AMR Corp and US Airways Group Inc, allowing AMR to exit bankruptcy and close on a tie-up creating the world's largest carrier.

The U.S. Department of Justice had challenged the merger, which was to serve as the basis for AMR's plan to pay back creditors and exit bankruptcy. The DOJ's antitrust watchdog had said the plan could impede competition and drive up ticket prices. The sides settled earlier this month, with the airlines agreeing to divest some takeoff and landing rights at major airports.

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Before You Go

9 Epic Merger Fails
Arby's And Wendy's(01 of09)
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In 2008, the owner of Arby's bought Wendy's for $2.34 billion. Only three years later, Wendy's decided to sell Arby's to a private equity group after the roast-beef sandwich chain continually struggled to grow its profits. (credit:AP)
Bank Of America And Countrywide(02 of09)
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Bank of America's acquisition of mortgage lender Countrywide in 2008 would later be referred to as "the worst deal in the history of American finance." The bank paid just $2.5 billion for Countrywide, a deal that ended up costing the bank more than $40 billion. (credit:AP)
Kmart And Sears(03 of09)
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For $11 billion, Kmart acquired Sears in 2005. Sears' revenue dropped by more than 10 percent in the years following the merger, according to the New York Times. Eddie Lampert, the investor in charge of the deal and CEO of Sears, was deemed the worst CEO of the year in 2007. (credit:AP)
eBay And Skype(04 of09)
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eBay decided to buy Skype for $2.6 billion in 2005, only to sell the company four years later for $1.9 billion. Similar to the Sprint-Nextel failure, eBay and Skype were unable to successfully integrate their technological systems, according to PC World. (credit:<a href="http://www.flickr.com/" role="link" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr" data-vars-item-type="text" data-vars-unit-name="5bb30331e4b0480ca6615905" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="17" data-vars-position-in-unit="17">Flickr</a>:<a href="http://www.flickr.com/photos/41639958@N00/364082308" role="link" class=" js-entry-link cet-external-link" data-vars-item-name="Ryan Fanshaw Photography" data-vars-item-type="text" data-vars-unit-name="5bb30331e4b0480ca6615905" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/photos/41639958@N00/364082308" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="18" data-vars-position-in-unit="18">Ryan Fanshaw Photography</a>)
AOL And Time Warner (05 of09)
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In 2000, AOL announced that it was buying Time Warner for $160 billion to create the "world's largest media company," according to CNET. The combination didn't last long. In 2009, Time Warner separated entirely from AOL. Jerry Levin, who sold Time Warner to AOL, later told CNBC, "I presided over the worst deal of the century, apparently." AOL agreed to acquire The Huffington Post in February 2011. (credit:Getty Images)
Sprint And Nextel(06 of09)
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Deemed "the merger of equals," Sprint and Nextel agreed to a $36 billion deal in 2005. Technological differences between the two companies proved to be a difficult challenge and Sprint plans to shut down the Nextel network this June, CNN Money reports. (credit:Getty Images)
Quaker And Snapple(07 of09)
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Quaker acquired Snapple in 1994 for $1.7 billion. Just 27 months later, Quaker sold the company for $300 million. (credit:<a href="http://www.flickr.com/" role="link" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr" data-vars-item-type="text" data-vars-unit-name="5bb30331e4b0480ca6615905" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="9" data-vars-position-in-unit="9">Flickr</a>:<a href="http://www.flickr.com/photos/20606302@N00/2714942595" role="link" class=" js-entry-link cet-external-link" data-vars-item-name="yoohoojuju" data-vars-item-type="text" data-vars-unit-name="5bb30331e4b0480ca6615905" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/photos/20606302@N00/2714942595" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="10" data-vars-position-in-unit="10">yoohoojuju</a>)
Daimler-Benz And Chrysler(08 of09)
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In 1998, Daimler-Benz bought Chrysler for $36 billion. Ultimately, Chrysler's focus on accommodating customers with lower incomes did not fit with Daimler-Benz's luxury car making business model. In 2007, Daimler-Benz paid $650 million to Cerberus Capital Management to sever its ties with Chrysler, according to Time. (credit:<a href="http://www.flickr.com/" role="link" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr" data-vars-item-type="text" data-vars-unit-name="5bb30331e4b0480ca6615905" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="6" data-vars-position-in-unit="6">Flickr</a>:<a href="http://www.flickr.com/photos/54731423@N04/8487371183" role="link" class=" js-entry-link cet-external-link" data-vars-item-name="NRMA New Cars" data-vars-item-type="text" data-vars-unit-name="5bb30331e4b0480ca6615905" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/photos/54731423@N04/8487371183" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="7" data-vars-position-in-unit="7">NRMA New Cars</a>)
New York Central And Pennsylvania Railroads(09 of09)
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New York Central Railroad merged with Pennsylvania Railroads in 1968 to avoid bankruptcy. The former rivals came together to create Penn Central only to fall apart and file for bankruptcy just two years later. (credit:<a href="http://www.flickr.com/" role="link" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr" data-vars-item-type="text" data-vars-unit-name="5bb30331e4b0480ca6615905" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="2" data-vars-position-in-unit="2">Flickr</a>:<a href="http://www.flickr.com/photos/10175246@N08/7579357536" role="link" class=" js-entry-link cet-external-link" data-vars-item-name="psyberartist" data-vars-item-type="text" data-vars-unit-name="5bb30331e4b0480ca6615905" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/photos/10175246@N08/7579357536" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="3" data-vars-position-in-unit="3">psyberartist</a>)
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