US Airways and American Airlines extend merger pact into 2014

 
City A.M. Reporter
US AIRWAYS Group and American Airlines said yesterday they had extended their merger agreement as they fight a US government lawsuit seeking to block the combination, which would form the world’s largest airline.

The companies said they extended the date by which either airline could terminate the merger pact to either 18 January 2014, or the 15th day following the entry of a court order approving the merger should it be entered on or before 17 January, whichever is later. The previous termination date for the deal was 17 December.

Should the US district court hearing the government lawsuit rule against the merger, the carriers said either party may end the agreement five days after the entry of an order prohibiting the deal.

The US Justice Department and several states filed a lawsuit on 13 August to stop the merger of US Air and American parent AMR, arguing that it would lead to higher fares.