WASHINGTON — American Airlines, which is struggling to stay afloat, won approval from a U.S. bankruptcy judge to emerge from bankruptcy.
Reuters reported that the U.S. government has to approve the proceedings of a possible merger between American Airlines and U.S. Airways.
However, the outgoing American Airlines CEO, Tom Horton, was denied a $19.9 million severance pay as he’ll most likely not be retained in the merger. But it seems that the merger has been approved by the judge, for now.
The European Union approved the merger of the two airlines after the airlines offered a new set of concessions to the E.U.
The ball is now in the court, so to speak, of the Justice Department. The DOJ objected to the merger and has drawn out the bankruptcy proceedings by blocking the merger.
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