Source: AMR, US Airways delay meeting on merger

Source: AMR, US Airways delay meeting on merger

Credit: AFP/Getty Images

A US Airways tail rest on the tarmac near two American Airlines planes at Ronald Reagan Washington National Airport in Arlington, Virginia on April 23, 2012. American Airlines heads to federal court on April 23, 2012 to convince a bankruptcy judge that to survive, it must break labor agreements that workers fought decades to win. The airline lost more than $10 billion USD in the decade leading up to its declaration of bankruptcy last November. During that same period most of its major rivals used the bankruptcy process to cut wages and benefits, which American says has left it saddled with higher labor costs. US Airways has won the support of unions at the bankrupt American Airlines for a proposal to fold the two companies into one giant carrier, US Airways CEO Doug Parker said on April 20, 2012. AFP PHOTO/Jim Watson (Photo credit should read JIM WATSON/AFP/Getty Images)

Print
Email
|

by Associated Press

WCNC.com

Posted on February 11, 2013 at 12:05 PM

DALLAS (AP) -- The boards of American Airlines parent AMR Corp. and US Airways have pushed back meetings to consider final plans for their merger, Associated Press sources say. 

A source close to the matter said Sunday that the AMR board wants to meet in person, and that the US Airways board would only meet after the AMR board approves a deal. The source requested anonymity because the talks are private. 

It is not clear when the two boards would finally meet. People familiar with the matter said negotiations are continuing, on issues that include AMR CEO Tom Horton's exact title and role in the combined company. 

Discussions were centered on Horton being a non-executive chairman of the board while US Airways management, led by CEO Doug Parker, would run the day-to-day operations of the new carrier, which would keep the American Airlines name. 

The negotiations could still fall apart. United Airlines and Continental Airlines were within days of announcing a merger in 2008 when that deal fell apart, although they later resumed talks and completed a deal in 2010. 

If American and US Airways combine, it would create the world's biggest airline as measured by passenger traffic, although United Continental Holdings Inc. would still be slightly bigger if regional operations such as United Express and American Eagle are counted. 

On Friday, US Airways pilots ratified an agreement covering their pay and working terms if there is a merger. That was the last major piece to fall into place on the labor side for a merger to occur. American Airlines pilots approved a similar agreement in December. All three of American's unions support a merger that would result in US Airways management running the new company. 

The committee representing unsecured creditors in AMR's bankruptcy case had planned to meet Monday.
 

Print
Email
|