Federal judge approves US Airways emergence from Chapter 11 News
Federal judge approves US Airways emergence from Chapter 11

[JURIST] A federal judge on Friday gave US Airways [corporate website] the green light to emerge from Chapter 11 bankruptcy [SEC backgrounder], a little more than a year after the beleaguered airline sought protection. The approval clears the way for the airline to complete its merger [JURIST report] with America West [corporate website] by late this month or early October. The bankruptcy was US Airways' second since August 2002, as the country's seventh-largest airline has struggled to overcome rising fuel costs and the success of low-cost competitors like Southwest. Bankruptcy Judge Stephen Mitchell gave clearance for the airline after approving the last major hang-up over $12 million in severance pay for former executives with the airline. US Airways must wait a week before formally emerging from bankruptcy, but even as it does, three other of the nation's largest air carriers remain under bankruptcy protection [JURIST report]. US Airways has a news release on the approval. AP has more.