A federal judge approved

AMR's

(AMR)

proposed $742 million purchase of the assets of bankrupt

Trans World Airlines

Monday, rejecting competing offers, including a $1.1 billion bid by financier Carl Icahn.

The purchase must still be approved by the

Department of Justice

. The sale could close in April, according to published reports, and the 70-year-old TWA brand would disappear soon after that.

AMR is the parent company of

American Airlines

, which said it intends to offer jobs to most of TWA's 20,000 employees. TWA unions are also expected to approve the purchase.

American said it will assume $3.5 billion in TWA debt and wire $130 million in emergency financing to creditors of TWA Monday afternoon.

In recent trading on the

New York Stock Exchange

, AMR was down 93 cents, or 2.6%, to $35.50.