It’s been rumored for months: US Airways Group Inc. plans to merge with the struggling AMR Corp., the parent company of American Airlines (AA). And according to sources who spoke to Thomson Reuters, a deal could be penned in the next two weeks.
Sources familiar with the case say the airlines are in the final stages of the merger deal, but are still trying to work through two major issues: valuation and management structure. Sources say that although the US Airways and AMR, which is currently in bankruptcy, may still be far apart, a lot of progress has been made in getting the deal done.
Late last year, AA pilots announced that it supported a deal with US Airways.
Although AMR still has the option to emerge from bankruptcy independently, sources believe that isn’t likely to happen. AMR’s board will meet later this week to discuss the developments in the merger deal as well as their options for emerging from bankruptcy.
Read more InsideCounsel stories about American Airlines:
American Airlines labor agreement with pilots approved
American Airlines and pilots agree to labor proposal language
American Airlines pilots’ union says labor deal may be close
Court says American Airlines agents may vote to unionize
American Airlines’ bid to abandon pilots’ contracts fails
American Airlines reaches tentative contract agreement with pilots union
American Airlines’ union election temporarily blocked
