US Airways is talking to American Airlines about a possible merger as they are “seeking support” for a takeover plan, and so far some of the creditors that are handling the carrier’s bankruptcy wants to move forward.
The business story was published by Bloomberg who cited unnamed “people with knowledge of the talks,” but the report is the latest in an increasing number speculating that a US Airways-led merger may be in the works. If the details in the Bloomberg report are accurate, then it would appear to represent an escalation of US Airways’ interest in American.
In its report:
“Executives have laid out details of US Airways’ proposal for a combined airline to some members of the unsecured creditors committee and gotten a positive reception, said the people, who declined to be identified because the terms aren’t public. The goal would be to complete a merger before American parent AMR Corp. (AMR) exits Chapter 11, the people said yesterday.”
But even before the report, TheStreet.com writes US Airway already has been, “piece by piece, … very publicly starting to lay out its merger case, which is essentially that American is weak in the heavily populated East, while US Airways is strong.”
As background to that, TheStreet notes US Airways CEO Doug Parker has said several times during the past month that any US Airways would back away from any hostile merger attempt.
“You can’t do it on value,” Parker is quoted as saying by TheStreet.com at the airline’s media day on Wednesday. “You have to have the employees on your side.”