Judge signs off on American Airlines reorganization

A federal judge in New York has approved a plan by American Airlines to emerge from banruptcy, part of which involved a merger with US Airways, but a federal lawsuit to block that merger remains unresolved.

If AMR, American's parent company, can settle that lawsuit or win it in court, the federal bankruptcy judge indicates he's prepared to accept the plan for emerging from bankruptcy.

The antitrust lawsuit is scheduled for trial in November.

If American and US Air merge, the resulting company would be the largest commercial airline in the world.