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 [email protected]; Beth Jinks in New York at [email protected] To contact the editors responsible for this story: Ed Dufner at [email protected]; Jeffrey McCracken at [email protected]