Transport Airlines

American Airways-US Air deal has a price: It’s $11 billion, but it may be delayed

Feb 11, 2013 1:37 am

Skift Take

American and US Air spend the weekend getting the deal lined up and they’ll be darned if they’re going to see someone jump with the story before they’re ready to crow about it for mass marketing potential.

— Jason Clampet

Sponsored by:

Evolving Strategies in Travel Ad Tech and Bookings

US Airways Group Inc. and AMR Corp.’s American Airlines still are working on details of an $11 billion merger agreement, and any announcement would come no earlier than midweek, people familiar with the matter said.

The carriers had been heading last week toward board votes tomorrow and a possible announcement Feb. 12, said two of the people, who asked not to be identified because the talks are private. That time line will slip to later this week, they said.

The creditors committee in AMR’s bankruptcy, which has a meeting set for tomorrow, also would have to support any plan for a combination before the Fort Worth, Texas-based carrier could exit court protection.

Todd Lehmacher, a spokesman for Tempe, Arizona-based US Airways, declined to comment about the deliberations, as did Sean Collins, a spokesman for American. A tie-up between American, the third-largest U.S. airline, and No. 5 US Airways would create the world’s biggest carrier by passenger traffic.

Reuters reported earlier today on the new timetable for a merger announcement.

The case is in re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

Editors: Ed Dufner, Kevin Miller. To contact the reporters on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net; Beth Jinks in New York at bjinks1@bloomberg.net. To contact the editors responsible for this story: Ed Dufner at edufner@bloomberg.net; Jeffrey McCracken at jmccracken3@bloomberg.net.

Tags: ,

Next Up

More on Skift

Connecticut Tourism Sticks with “Still Revolutionary” Slogan for Summer Campaign
U.S. Travelers Use Mobile for Directions, Restaurants and Activities
Daily Travel Startup Watch: RoadHike, Dowza and More
How to Find the ‘Holistic Traveler’ Trapped in Your Data

We're the Moneyball of the Travel Industry

We know what's coming next in travel. Subscribe to the newsletter and get all the goodness in your inbox daily.