Join The Discussion

 

Fort Worth's new thoroughfare plan aims for more variety in street design

Fort Worth is launching a review of its master thoroughfare plan aimed at accommodating continued suburban growth and central city redevelopment with a greater variety of streets and more efficient traffic flow.

read more >

UPDATE: Could American Airlines move its headquarters?

A key linchpin in the Fort Worth economy, American Airlines Group Inc., is considering sites for a new headquarters, possibly outside the city, the airline’s CEO said this morning.

read more >

Crestwood area hoping to block planned office building

Residents of West Fort Worth’s Crestwood Association are trying to block the rezoning of a small apartment complex at White Settlement Road and North Bailey Avenue to make way for a planned office building, saying it would represent the start of commercial encroachment into their neighborhood.

read more >

Tiger Woods takes a swing at Fort Worth's Dan Jenkins - in print anyway

Rarely does Golf Digest make the news. Leave it to Dan Jenkins to change that.

read more >

Hilton Fort Worth named to Historic Hotels

The Hilton Fort Worth is one of 24 hotels named a member of the Historic Hotels of America, the Washington, D.C.-based group announced on Nov. 18.

read more >

Judge questions giving OK to AMR bankruptcy plan

 

DAVID KOENIG,AP Airlines Writers
SCOTT MAYEROWITZ,AP Airlines Writers


NEW YORK (AP) — Lawyers for American Airlines pressed a judge Thursday to approve the company's plan to merge with US Airways and exit bankruptcy protection, but the judge delayed a ruling because of the federal government's lawsuit against the merger.

This was supposed to be American's victory lap — the day that a judge would remove the last hurdle for a merger that would make American the world's biggest airline.

Instead, it was a sideshow.

The U.S. Justice Department ruined American's plans — at least temporarily — on Tuesday by filing a lawsuit against the merger, which it said would hurt competition and increase prices for consumers by leaving four airlines controlling more than 80 percent of the U.S. air-travel market.

In court Thursday, lawyers for American parent AMR Corp. and its unsecured creditors said the Justice Department's case shouldn't stop the bankruptcy judge from approving AMR's reorganization plan.

But Judge Sean Lane wasn't so sure. He said he had "lingering doubts" about approving the turnaround plan and even considered postponing Thursday's hearing. Instead, he went ahead with the hearing but delayed a decision on AMR's plan until at least Aug. 29.

American and US Airways had hoped to close their merger by late September, but executives for both companies say that is unlikely now. They vowed to fight the Justice Department in court, but that could take months. If the government wins, AMR could be forced to dust off a plan to emerge from bankruptcy as a stand-alone company — another long process.

The merger was supposed to cap an era of consolidation that has helped the airline industry limit seats, raise prices and return to profitability. Although it would leave one fewer airline, American and US Airways argued that their merger would increase competition by creating a stronger rival to industry leaders United Airlines and Delta Air Lines.

Judge Lane also delayed a ruling on a $20 million severance award for AMR CEO Tom Horton, who would serve briefly as chairman before leaving the new company. The U.S. trustee's office, which oversees bankruptcy cases for the Justice Department, said the payment violates bankruptcy-law limits designed to prevent executives from getting big rewards not available to regular employees.

Susan Golden, a lawyer for the trustee, said the new company shouldn't bear the cost of paying Horton for work he did on AMR's reorganization. "He's being paid for work already performed," she said.

But Stephen Karotkin, a lawyer for AMR, said creditors and shareholders approved the merger knowing that it contained Horton's payment. He said the payment in cash and stock would ensure that Horton sticks around long enough to help smooth the process of combining two airlines.

___

Koenig reported from Dallas.

___

Koenig reported from Dallas.
 

< back

Email   email
hide
Midterms
What was the message of the midterm elections?