American Airlines Open To Merger Options

By Author: Steve Robinson
Total Articles: 467
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Frequent fliers are often rightly concerned about the impact that airline mergers may have on the future of cheap airplane tickets and cheap vacation packages. Further airline mergers may be on the horizon with the news that American Airlines has reversed its position and now claims that it is willing to at least consider merger options, including US Airways.

Previous comments from American Airlines parent company AMR Corporation noted it might be open to a merger eventually, but not until after American Airlines had emerged from its bankruptcy reorganization process.

American’s new position does not mean that the company is actively pursuing a merger; rather that it is now open to considering such an option.

American has come to an agreement with its creditors whereby it has agreed to explore whether a merger would create more value than its plan to exit bankruptcy as a stand-alone airline.

AMR’s creditors panel has been pressing for such a position so that the company would be open to reviewing all options including studying a merger with US Airways. US Airways has announced that it is considering ...
... whether to mount a takeover bid.

American Airlines had little choice but to reverse its prior position that it was not open to considering merger options until after it had exited bankruptcy. Otherwise either the bankruptcy judge and/or its creditors could have started exploring merger options on their own.
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