DALLAS (AP) -- American Airlines parent AMR Corp. plans to ask a bankruptcy judge on Thursday to approve its turnaround plan that includes a merger with US Airways, even though the U.S. government has sued to block the deal. The merger would create the world's largest airline in terms of miles flown by passengers.
The hearing had been expected to be one of the final steps before AMR could close the merger and exit bankruptcy protection after nearly two years.
But AMR could spend several more months in bankruptcy court while it fights to save the merger. The Justice Department and six states sued to block the deal Tuesday, saying it would hurt competition and cause consumers to pay higher fares.
AMR filed for bankruptcy protection in November 2011 after losing billions of dollars in the previous decade. Last month, it reported its first second-quarter profit in six years.
In February, it announced plans to merge with US Airways.