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US Airways Proposes Merger to AMR Corp. CreditorsNovember 20, 2012 By: Khier Casino
As reported by The Associate Press, the chief executive officer of AMR Corp., American Airlines' parent company, says that if US Airways takes over American the two air carriers could produce more than $1.2 billion a year in new revenue and cost savings. Thomas Horton, AMR CEO, said that AMR creditors should receive a majority of the new airline's stock.
Other prospective buyers include United and Delta Air Lines Inc., which are competing for their share of American Airlines, according to AP.
US Airways CEO Doug Parker has been proposing the idea of a merger since it filed for bankruptcy protection in November 2011. American's three unions have expressed support for the merger between the two carriers, AP writes.
AP also reported that US Airways has signed a temporary contract with American Airlines' flight attendants and pilots, but have not done so with its own airline workers. Flight attendants have been on an on-going protest around the country and are gathering votes to endorse a strike.
Read the AP story here.