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US Airways, American Airlines Merger Imminent, Reuters Reports

By Matt Alderton
January 29, 2013

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A long-rumored merger between US Airways Group Inc. and American Airlines' bankrupt parent company AMR Corp. is "in the final stages" of negotiation, Reuters reported last week, citing "four people familiar with the matter" who said a merger agreement could be as little as two weeks away.

According to Reuters, the price of the merger and the management structure of the merged airlines remain the deal's final hurdles. Although the merger seems likely, those two points are significant enough, the four sources said, to derail talks at the 11th hour.

"Negotiations are continuing and could still fall apart, but progress has been made toward getting a deal done," writes Reuters reporter Soyoung Kim, who broke the story Friday. "An alternative plan for AMR to exit bankruptcy as an independent company appears a less likely path."

AMR's board planned to meet yesterday and today to continue merger discussions. If it ultimately votes in favor of a deal, Reuters says, the result will "create the world's largest airline and help the two carriers better compete with larger rivals United Continental Holdings Inc. and Delta Air Lines Inc."


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