AMR Corporation, the parent company of American Airlines, and US Airways Group have each agreed to extend the outside date at which either party may terminate the previously announced Agreement and Plan of Merger.

The decision comes in light of the trial schedule surrounding litigation with US department of justice, which is seeking to block the merger.

In a joint statement, Tom Horton, chairman, president and chief executive of AMR, and Doug Parker, chairman of US Airways, said: “The boards and management teams of AMR and US Airways remain committed to completing this combination to create the new American, and the extension of this outside date is a reflection of this commitment.

“Our focus is on mounting a vigorous defence and winning our court case so the new American can enhance competition, provide better service to our customers and create more opportunities for our employees.”

The amended Merger Agreement extends the date on which either AMR or US Airways may terminate the Merger Agreement from December 17th, 2013 to the later of January 18th, 2014, or, if the court enters an order on or before January 17th, 2014 in favour of American and US Airways, on the 15th day following the entry of such order. 

In the event of an unfavourable ruling by the Court, AMR or US Airways may terminate the merger agreement five days after the court enters a final, but appealable, order permanently enjoining the merger.