Claremore Daily Progress

Top Stories

March 29, 2013

American-US Airways merger approved by judge

OKLAHOMA CITY — American Airlines won bankruptcy court approval Wednesday to combine with US Airways and form the world’s biggest airline.

“The merger is an excellent result. I don’t think anybody disputes that,” Judge Sean H. Lane said before issuing his decision.
But the judge declined to sign off on a proposed $20 million severance package for Tom Horton, currently the CEO of American’s parent AMR Corp.
The approval is an important milestone for American, which filed for Chapter 11 in November 2011 after having long resisted using the bankruptcy process to cut labor and other costs. The merger still needs approval from Department of Justice antitrust regulators and US Airways shareholders. It is expected to close by the fall.
The combined airline will have 6,700 daily flights and annual revenue of roughly $40 billion. The new American Airlines will fly slightly more passengers than United, the current No. 1. It will be run by Doug Parker, the CEO of US Airways Group Inc., who began pursuing a merger shortly after American entered bankruptcy protection.
The U.S. trustee, a federal bankruptcy watchdog, had objected to the severance package for Horton. While he didn’t question the amount, Lane agreed that the timing of it seemed to violate prohibitions in the bankruptcy law.
“Approving it today is just not appropriate,” Lane said. The judge plans to issue a written decision at a later date detailing his reasoning.
Horton has spent nearly his entire career at American, becoming CEO when the company filed for bankruptcy. Horton will cede the CEO position to Parker when the deal closes, and has agreed to leave the company’s board within a year of the closing date.
In 2011, Horton was paid a salary of $618,135. He also got stock awards and options that were valued that year at nearly $2.7 million, but the company argued those could be nearly worthless after the bankruptcy reorganization. Figures for 2012 aren’t yet available.

Text Only
Top Stories
  • Former Sheriff’s deputy arrested

    The Rogers County Sheriff’s Office arrested ex-deputy Brian Kindle Wednesday after receiving multiple reports concerning his safety.

    July 25, 2014

  • Chelsea man receives 54-year sentence for child abuse

    A Chelsea man was sentenced to 54 years in prison Wednesday after he pleaded guilty to the charges of child abuse by injury and child sexual abuse.

    July 25, 2014

  • Rogers County Clerk sues The Daily Progress

    Rogers County Clerk Robin Anderson has filed a lawsuit against The Daily Progress and the newspaper’s government reporter Salesha Wilken.

    July 24, 2014

  • Band.jpg Local band loses everything on tour

    A Claremore band, The Last Slice, had $30,000 worth of equipment, instruments, merchandise and clothes stolen while on the East Coast Ska Revival tour in Miami, Fla.

    July 24, 2014 1 Photo

  • RSU among Top 15 Southwest schools for game development

    Animation Career Review ranked Rogers State University as the 12th best school in the Southwest for Game Design and Development. 

    July 24, 2014

  • SEARCH DAY 3

    A search connected to a Rogers County cold case continued Wednesday at a Tiawah Hills property. Law enforcement agencies worked through the heat and elements in an attempt to locate associated evidence that could be used to explain the disappearance of a local woman 18 years ago.

    July 24, 2014

  • 34 OSBI agents graduate from investigative academy

    OSBI has graduated its 14th advanced investigative academy.

    July 23, 2014

  • Study: 1 in 4 Oklahoma kids live in poverty

     Nearly 1 in 4 Oklahoma children live in poverty and the number of children living in high-poverty areas has more than doubled since 2000, according to a national study released Tuesday.

    July 23, 2014

  • GRDA Newkirk storm assistance.jpg Power for Progress…

    When high winds rolled across Kay County on July 14, they had little mercy on the power lines in the area.

    July 23, 2014 1 Photo

  • Okla. AG says health care ruling bolsters case

    Oklahoma’s attorney general says a decision by a federal appeals court in Washington, D.C., against a provision of the federal health care law bolsters the state’s lawsuit that challenges a similar provision of the Affordable Care Act.

    July 23, 2014