WSJ: US Airways Considers Merger With American Airlines
FORT WORTH, Texas - The Wall Street Journal is reporting that US Airways has told some American Airlines creditors that merging the two carriers could yield more than $1.5 billion a year in added revenue and cost savings.
The WSJ cited people familiar with the situation. The article says the talks between US Airways and creditors of AMR, American Airline's parent, could amount to an end-run around AMR's efforts to emerge from bankruptcy protection as an independent airline.
AMR filed for Chapter 11 protection in late November and announced in February it wanted to cut about 13,000 jobs overall. In Tulsa, that translates into over 2,100 jobs at American's Maintenance base.
In January 2011 there were media reports several airlines, including US Airways and Delta were assessing possible bids.
In March, AMR began the process of filing a motion to dissolve its collective bargaining agreements with its three major unions.
The motion is a request for the judge overseeing AMR's bankruptcy to cancel the contracts the company has with its unions and replace them with new ones.
The Wall Street Journal says there have been no formal talks between US Airways and AMR.