AMR Nears Merger with U.S. Airways

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AMR, parent of American Airlines, has moved closer to an exit from Chapter 11 and a possible merger with U.S. Airways Group Inc. (NYSE: LCC), as pilots of the troubled company have opened one more door to a deal.

Even though such mergers are often disasters. as the new, merged carrier struggles with labor problems and customer service undercut by combining reservations systems and staff, U.S. Airways wants to get bigger, like Delta Air Lines Inc. (NYSE: DAL) and United Continental Holdings Inc. (NYSE: UAL) recently did through mergers of their own.

According to The Wall Street Journal:

After three weeks of confidential negotiations overseen by AMR’s creditors committee, the Allied Pilots Association board on Saturday voted 11-5 in favor of a proposed accord, the union said. Terms weren’t disclosed. The proposal requires the assent of the other parties to the talks, including both carriers and US Airways’ pilot union.

Douglas A. McIntyre

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