Federal judge approves American Airlines' bankruptcy plan; federal lawsuit blocking merger remains

A federal judge is approving American Airlines' plan to emerge from bankruptcy protection and merge with US Airways, although the airlines must still resolve their lawsuit with the federal government, which is trying to block the merger.

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A trial over that lawsuit is scheduled for November.

Thursday's ruling by federal bankruptcy Judge Sean Lane in New York provides at least the perception that the merger is still moving forward.

The airlines had originally hoped to close the merger this month and create the world's biggest carrier. They're now shooting for the end of the year if they can settle the antitrust lawsuit or win it in court.

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