US Airways and American Airlines may merge soon

A deal expected between the two airliners in the next two weeks

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:

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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

American defends its lawsuit against union action

Pilots’ union sues American

Contributing Author

Cathleen Flahardy

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