American Airlines-US AIr Meger

A federal bankruptcy judge has cleared the way for American Airlines and US Airways to close their merger and create the world's largest airline.

The merger between American Airlines and US Airways was supposed to cap an era of consolidation that helped the airline industry return to profitability. And it would produce a stronger competitor to giants United and Delta.

American Airlines and US Airways will merge and create the world's biggest airline. The boards of both companies approved the merger late Wednesday, according to three people close to the situation.