A federal bankruptcy judge has denied a proposed $20 million severance payment for the CEO of American Airlines as part of the company’s merger with US Airways.
The parent company of American Airlines lost $192 million in February despite slashing labor costs by 20 percent. The loss was much narrower than in February 2012.
American Airlines and US Airways are expected to move one step closer toward a merger on Wednesday, as a bankruptcy judge is set to consider approving the agreement.
A federal official opposes a nearly $20 million severance payment to the CEO of the parent company of American Airlines in the carrier’s proposed merger with US Airways.
American Airlines has promoted an executive closely involved in overseeing the proposed merger with US Airways.
The CEO of JetBlue Airways Corp. expects closer ties with its partner carriers — including American Airlines.
The parent company of American Airlines earned $44 million in January. A year earlier, AMR lost $234 million during the early stages of its 2011 bankruptcy reorganization.
American Airlines and its American Eagle affiliate will add new flights to San Diego and Mexico this summer.
American Airlines said that it’s filed an application with the U.S. Department of Transportation for new daily round-trip flight between Sao Paolo and both Los Angeles and Chicago.
US Airways CEO Doug Parker, the man in line to lead American Airlines after the two carriers merge, expects to announce a new management team before closing the deal.
Leaders from American Airlines and US Airways have told lawmakers that combining their companies will benefit consumers by creating tougher competition.
A bankruptcy judge will consider the merger of American Airlines and US Airways on March 27. The two carriers last week announced plans to merge in an $11 billion deal.