Transport Airlines

American CEO says US Airways merger decision will happen within weeks

Jan 03, 2013 5:01 pm

Skift Take

This is so 2012. We’re bored already.

— Rafat Ali

Latest Report: The Future of the Aircraft Cabin

American Airlines parent AMR Corp., now reorganizing in bankruptcy, expects to reach a decision within weeks on whether to merge with US Airways Group Inc. or remain independent, Chief Executive Officer Tom Horton said.

The company’s board and unsecured creditors committee asked unions at Fort Worth, Texas-based American and at US Airways to help evaluate the benefits, costs and risks of a deal, Horton said today in a memo to employees.

“I can assure you we are conducting a collaborative, fact- based analysis to determine the best path forward for American,” Horton wrote. “While I cannot give you a precise date, I can tell you that we expect to bring this to conclusion within a matter of weeks.”

AMR has a board meeting set for Jan. 9 at which it hoped to be ready to decide whether to go ahead on a tie-up, people familiar with the matter said in mid-December. US Airways has been pursuing a merger with American, which filed for bankruptcy in November 2011, to form the world’s largest carrier.

–Editors: Ed Dufner, John Lear

 

To contact the reporter on this story: Mary Jane Credeur in Atlanta at mcredeur@bloomberg.net

 

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net

Tags: ,

Next Up

More on Skift

The Joffrey Ballet Teaches JW Marriott Staff the Subtleties of Luxury Service
Bali’s Bid to Become a Bitcoin-Friendly Vacation Destination
Daily Travel Startup Watch: Bookingkit, ShuttleBeacon And More
3 Ways to Guarantee Your Next Business Trip Won’t Be All Work and No Play