AMR soldiers on in bankruptcy court despite suit - MyFoxAustin.com | KTBC Fox 7 | News, Weather, Sports

AMR soldiers on in bankruptcy court despite suit

Updated:

NEW YORK (AP) - Lawyers for American Airlines are in bankruptcy court asking a judge to approve the company's turnaround plan, which includes a merger with US Airways.

The merger is in doubt, however, since the federal government is suing to block the deal.

A hearing that began Thursday in federal court in New York was expected to be 1 of the final steps before American parent AMR Corp. closed the merger and ended nearly two years under bankruptcy protection.

Instead, the Justice Department and six states are challenging the merger, saying that it will hurt competition and lead to higher prices for air travelers. The airlines vow to fight the government.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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