American Airlines to look at merger options
Ailing American Airlines has said it will consider the possibility of a merger.
Travel Insurance News - 14/05/2012
<< Flight disruptions amid Air India strike | Travel News | Axe, knives and sword seized at Belfast airport >>
Ailing American Airlines has said it will consider the possibility of a merger.
Officials from the airline’s parent firm AMR Corp said in a statement today that carrier management had met with creditors amid its bankruptcy recovery efforts and have agreed to weigh the option whilst rival US Airways continues to push for a tie-up.
The news comes despite AMR chief Thomas Horton holding firm for months that the airline would do everything it could in the effort of re-emerging as a sole carrier. Meanwhile, hundreds of American Airlines employees have demonstrated at the company’s Texas and New York headquarters over the past several days seeking a “no confidence” ruling for their employer’s management despite the Transport Workers Union saying today that it was pleased to see AMR considering a merger.
But fifth largest US carrier, US Airways has said that a merger with its ailing counterpart would be the best plan of action for both airlines; one report from the company said that a tie-up would save as much as $1.2 billion (£744 million) as well as more than 3,000 jobs.
However, AMR’s head of restructuring efforts, Beverly K. Goulet, cautioned that the announcement “does not in any way suggest” that a merger effort is underway or that a merger with any particular entity would be perused.
<< Flight disruptions amid Air India strike | Travel News | Axe, knives and sword seized at Belfast airport >>

CheapTravelInsurance.com is a trading name of JEM Clothing Ltd. Registered in England. Company No: 09319107 Registered Office: 98 Station Road, Sidcup, Kent, DA15 7BY which for travel insurance are Introducer Appointed Representatives of Just Insurance Agents Limited who arrange and administer travel insurance on behalf of CheapTravelInsurance.com.
Just Insurance Agents Limited are registered in England. Company No. 05399196. Registered Office: Victoria House, Toward Road, Sunderland, SR1 2QF. Just Insurance Agents Limited are authorised and regulated by the Financial Conduct Authority (FCA) number 610022.