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September 23, 2013

American, US Airways extend merger agreement by a month, delete Horton's $20 million compensation package

American Airlines and US Airways have agreed to extend their merger agreement by an extra month as the two carriers wait for the results of an antitrust suit filed by the U.S. Department of Justice.

The companies also have deleted American chief executive Tom Horton's $20 million compensation from the merger agreement, according to a Securities and Exchange Commission filing made on Monday morning. American had previously said Horton would ask the board of directors to remove his compensation from the merger agreement at a board meeting last week.

In a joint statement issued on Monday morning, the carriers said they are both committed to completing the merger that was announced in February. The companies agreed to extend the date at which either company may terminate the agreement from December 17 to January 18, 2014.

"Our focus is on mounting a vigorous defense and winning our court case so the new American can enhance competition, provide better service to our customers and create more opportunities for our employees," said American chief executive Tom Horton and US Airways chief executive Doug Parker in a joint statement.

A trial is scheduled for November 25 in a federal district court in Washington D.C.

The carriers said either side may terminate the merger agreement 15 days after the court enters an order on or before January 17 in favor of the merger. If the court does not rule in their favor, American or US Airways can terminate the merger five days after the court enters a final order stopping the merger.

-Andrea Ahles

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Comments

Tommy Hart

no means no. Court says no so quit trying to scam the nation!

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