Bankruptcy Judge Sean Lane on Friday officially approved American Airlines’ merger agreement with US Airways, the Fort Worth (Texas) Star-Telegram reported on Saturday. And in keeping with his decision at a March 27 hearing, the written order did not approve a $20 million severance package proposed for American Chief Executive Tom Horton—a plan that U.S. Trustee Tracy Hope Davis had objected to. The two carriers had originally agreed to pay Horton $9.9375 million in cash and $9.9375 million in shares of the new company’s common stock once the merger closed. Davis argued that the payment did not conform to restrictions placed on executive compensation by the Bankruptcy Code.
