There may be a way out of bankruptcy for American Airlines: a merger with US Airways, company officials said last week.
In December AMR Corp., the parent company of American Airlines and American Eagle, filed to reorganise under a Chapter 11 bankruptcy proceeding in a United States court.
US Airways filed a disclosure form Friday with a US securities regulator stating that it is in talks with the three unions – which represent pilots, flight attendants, mechanics and fleet service employees – about a potential takeover.
Doug Parker, US Airways’ CEO, wrote in a letter to employees that the merger has not been finalised and would require approval from AMR’s creditors and board of directors.
“Today’s news does not mean we have agreed to merge with American Airlines. It only means we have reached agreements with these three unions on what their collective bargaining agreements would look like after a merger, and that they would like to work with us to make a merger a reality,” he said.
See the April 26, 2012 edition for full coverage.