Wednesday, February 6, 2013

AMR (American Airlines) - US Airways Near Merger

There is fast breaking news out of the airline merger world this afternoon. The Wall Street Journal is reporting that the merger between AMR (American Airlines) and US Airways is nearing its final stages according to those familiar with the discussions.

The rumors of the deal speculate that the stock transfer of ownership would take AMR out of Chapter 11 Bankruptcy and AMR's creditors would own around 72% of the airline while US Airways stock holders would own around 28% of the new airline.

On the leadership side the current outline is that US Airways CEO Doug Parker would come on as the new CEO of the new airline and AMR Chief Executive Tom Horton would stay on as a non-executive board chairman for a bit.

The Wall Street Journal report says that the new airline will likely retain the American name and stay based in Fort Worth, Texas.

The speculation puts the timing of the merger in the next week or so....we will have to see!

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