Merger Talk Heats Up Again for American, US Airways

Will they or won’t they? Once again, several news reports are touting sources who say a merger between almost-out-of-bankruptcy American Airlines and suitor US Airways could happen and the heated-up speculation suggests it might happen in the near future.

How American Performed in Latest Statistics

Merger Decision ‘Soon’

American executives have long been noticeably cool to the idea of a merger, indicating early on that they hoped to emerge from bankruptcy as a stand-alone airline. More recently, though, there have been some indications that the carrier is at least open to the possibility of a merger.

The Wall Street Journal quotes a recent email from CEO Tom Horton to American employees which said, “We are approaching the end of the restructuring and the beginning of a new American,” who then added that AMR expects to reach a conclusion “soon” on whether to merge with US Airways.

How Bankruptcy Looks to an American Pilot

Pilots Ratify New Contract

Despite all the merger rumors, there have been few concrete developments but one was last Friday’s “yes” vote by the American pilots to ratify the airline’s latest contract offer which passed by an overwhelming 5,489 to 1,951. The pilots’ union has been a longtime supporter of overtures from US Airways and union spokesman Dennis Tajer told FareCompare last month that no matter how the vote came out, pilots would still support a merger.

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Published: December 10, 2012