DALLAS — Lawyers for American Airlines said Friday that the company’s plan to merge with US Airways and exit bankruptcy is sound and shouldn’t be delayed by a government lawsuit against the merger.
American’s parent, AMR Corp., hoped to close the merger and exit Chapter 11 protection next month. But the U.S. Justice Department upended that schedule last week by suing to stop the merger, which it says will hurt competition and cause airfares and fees to rise. That case is expected to go to trial late this year or early in 2014.
The lawsuit caused the judge in AMR’s bankruptcy case, Sean Lane of New York, to delay a decision on the reorganization plan until next Thursday.