Court Delays Ruling On American Airlines Reorganization Plan

A bankruptcy court Thursday delayed a ruling on the reorganization plan for AMR Corporation, meaning American Airlines turbulent times are not over yet.

At the start of the hearing, the court questioned the appropriateness of ruling on the plan in light of a Justice Department lawsuit.

The Justice Department, earlier this week, challenged the proposed merger, saying a combination of the two companies would reduce competition for commercial air travel in local markets and would result in passengers paying higher airfares and receive less service.

The reorganization plan lays out how American Airlines' parent company will pay off its creditors and debts. It would also bring the Dallas-based airline one step closer to its merger with US Airways, a move the Transport Workers Union of America supports.

The court allowed the hearing to continue as planned, but reserved a decision until the court has deemed it appropriate to confirm the plan. At this point, there's no specific timeframe for a ruling.

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