The department's legal challenge to the deal also could throw a
wrench into AMR's plans to quickly emerge from bankruptcy-court
protection, as the merger is the basis of its bankruptcy-exit plan. The
two airlines had hoped for Washington's blessing ahead of a
bankruptcy-court hearing set for Thursday to confirm the exit plan,
which has the support of the company's creditors and unions.
American and US Airways said they would mount "a vigorous and strong defense…and pursue all legal options" to complete their combination, which would create the world's largest airline. Read more»»»
