Aug. 23--A federal judge could decide as soon as next week when American Airlines and US Airways will have their day in court.
U.S. District Judge Colleen Kollar-Kotelly scheduled a conference at 9:30 a.m. Friday with attorneys from the carriers and the Justice Department to discuss the government's antitrust suit filed last week to stop the airlines' merger.
American and US Airways asked the court on Thursday to schedule a trial for Nov. 12. In its request, the carriers said the Justice Department wants to delay the trial to February.
In her order Friday, Kollar-Kotelly said she has a criminal trial set to start Jan. 14 that is expected to last six to eight weeks. She ordered the government to file its response to the carriers' trial date request by 5 p.m. Tuesday. The airlines then have one day to reply.
Separately, American's parent, AMR Corp., told U.S. Bankruptcy Judge Sean Lane that its reorganization plan should be confirmed despite the Justice Department's lawsuit. In a filing Friday, American said its plan lays out a timetable describing what would happen if regulatory approval of the merger is delayed.
"All parties involved are well aware that if a satisfactory resolution of the DOJ action is not obtained, the merger will not be consummated and the Plan will be withdrawn," the filing said.
Lane deferred his decision on AMR's reorganization plan last week. He asked interested parties to submit written arguments on why he should confirm or deny the plan now, while the government's suit is pending.
The unsecured creditors committee voiced its support for confirming the plan now instead of waiting for the results of the antitrust case. The committee said it believes the Justice Department's suit is "without merit."
"After an 18-month restructuring process and a thorough assessment of all reasonable restructuring alternatives between the Debtors, the Committee, and other stakeholders, creditors and equity interest holders unequivocally selected this Plan as the best path forward. They did so notwithstanding the risk of government opposition to the Merger -- a risk that was thoroughly disclosed and understood," the creditors committee filing said.
The Justice Department, in a three-page filing in bankruptcy court Friday, said: "The United States takes no position as to whether the Debtors' Plan should be confirmed now, notwithstanding the pendency of the antitrust suit and the attendant risk that a confirmed plan may not be able to become effective for a considerable time, if at all," the filing said.
The Justice Department said it filed to give Lane some background regarding the antitrust suit, describing a series of meetings between the government and the carriers in late July and early August. The carriers asked to meet with Assistant Attorney General William Baer by Aug. 5 to discuss concerns about the merger and that meeting occurred on Aug. 6, seven days before the government filed its suit.
In its filing, the Justice Department said it wants its antitrust suit tried in early 2014, since such cases "require extensive fact and expert discovery," and it needs a significant amount of time to litigate.
Andrea Ahles, 817-390-7631 Twitter: @Sky_Talk
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