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

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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.

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