American Airlines, US AIrways merger decision delayed
3:13 AM, Feb 11, 2013
DALLAS (AP) - The boards of American Airlines parent AMR Corp. and US Airways have pushed back meetings to consider final plans for their merger, Associated Press sources say.
A source close to the matter said Sunday that the AMR board wants to meet in person, and that the US Airways board would only meet after the AMR board approves a deal. The source requested anonymity because the talks are private.
It is not clear when the two boards would finally meet. People familiar with the matter said negotiations are continuing, on issues that include AMR CEO Tom Horton's exact title and role in the combined company.
Discussions were centered on Horton being a non-executive chairman of the board while US Airways management, led by CEO Doug Parker, would run the day-to-day operations of the new carrier, which would keep the American Airlines name.
The negotiations could still fall apart. United Airlines and Continental Airlines were within days of announcing a merger in 2008 when that deal fell apart, although they later resumed talks and completed a deal in 2010.
If American and US Airways combine, it would create the world's biggest airline as measured by passenger traffic, although United Continental Holdings Inc. would still be slightly bigger if regional operations such as United Express and American Eagle are counted.
On Friday, US Airways pilots ratified an agreement covering their pay and working terms if there is a merger. That was the last major piece to fall into place on the labor side for a merger to occur. American Airlines pilots approved a similar agreement in December. All three of American's unions support a merger that would result in US Airways management running the new company.
The committee representing unsecured creditors in AMR's bankruptcy case had planned to meet Monday.