American Airlines' board to discuss merger

January 08, 2013

Members of American Airlines’ Board of Directors are meeting today…in part to discuss a possible merger with Tempe-based U.S. Airways.

Directors of American Airlines' parent company aren’t expected to decide on a merger plan yet. But some industry analysts say signs are pointing in that direction. Investors have been bidding up US Airways' stock price, and leaders of the two pilot unions agree on how to combine contracts, two developments that analysts say strengthen the case for a merger. American parent AMR Corporation and US Airways Group have been talking about a potential merger since late summer but have not agreed on price, each side's ownership share, and who would run the company, according to people familiar with the situation. AMR CEO Thomas Horton raised expectations of a quick outcome when he told employees last week that the company would decide "within a matter of weeks" whether it would be better to merge with smaller US Airways or remain independent. AMR filed for bankruptcy protection in November of 2011. Steve Goldstein, KJZZ News, Phoenix.

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