A New York judge delayed a decision to approve a reorganization plan by American Airlines to exit bankruptcy, according to a report on Thursday, August 15. According to analysts, the decision to delay the reorganization plan is more of a psychological blow, rather than a legal one, that will affect American Airline and its employees.

The decision to delay was made after the U.S. Justice Department and six states filed a lawsuit to prevent the merger of US Airways and American Airlines. A merger between the two airlines will result in higher fares and fees for consumers and will decrease competition, according to the U.S. Justice Department. However, the two airlines said the merger is the only way to compete with larger airlines like Delta and United.

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