Friday, January 04, 2013

American Airlines, US Airways One Step Closer to a Merger

Well, the media are going to insist on calling it a merger, but we all know that US Airways is planning to acquire American Airlines once American's parent company AMR emerges from bankruptcy.

This announcement today from US Airways -- issued as a "joint statement" between US Air and American -- indicates that the train is on schedule (to mix metaphors):

TEMPE, Ariz., Jan. 4, 2013 — US Airways Group, Inc. (NYSE: LCC) today issued the following statement:

"American Airlines and US Airways, with participation of committee counsel for the Unsecured Creditors Committee, are pleased that they have completed discussions with the Allied Pilots Association and US Airline Pilots Association intended to develop a framework for the terms of employment for pilots, as well as a process for pilot integration, in the event of a merger between AA and US during restructuring.  This memorandum of understanding was approved by the Allied Pilots Association’s Board of Directors and by USAPA’s Board of Pilot Representatives.  This memorandum of understanding will assist all of the stakeholders, including the Boards of AMR and US Airways, in making an informed decision as to whether a merger should ultimately be pursued.  The MOU is one of several elements to be considered before a decision on a merger can be made.  Details regarding the MOU are still covered by the terms of a non-disclosure agreement so they cannot be further disclosed at this time."


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