US Airways, American one step closer to merger

Tempe-based US Airways is one step closer to merging with American Airlines following a judge’s decision Wednesday. 

American has been in Chapter 11 bankruptcy since late 2011, so it needed a court’s approval before the deal could go forward.

In his decision, Judge Sean Lane said the merger with US Airways is an excellent outcome, but he wouldn’t sign off on a $20 million severance package for Tom Horton, the current CEO of American’s parent company. The proposed new airline will keep American’s name but be lead by US Airways CEO Doug Parker.

Horton might still get his payout though, if the board of directors of the new airline signs off.

The merger still needs to be approved by the Justice Department and shareholders.