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US: Previously unknown deal between US Airways, AA comes to light

By  |  January 15, 2013

A previously unheard of proposal made by US Airways Group to AMR Corp – parent company of American Airlines – has recently come to light from unnamed sources. The merger, which was eventually abandoned, was originally made back in April and “ignored” by AMR, according to reports, which also say that the reveal of the botched proposal reveals more about the steps American Airlines is taking after its acquisition of bankruptcy protection. American is reportedly considering whether to pursue a merger deal, or to become an independent company. Sources also say that US Airways made a second proposal in November which the two parties are still discussing; the latest report is a proposed merger that gives American’s creditors 70 percent of the resulting entity, and US Airways shareholders 30 percent. The airline would be run by US Airways’ Chief Executive Doug Parker.

 

Full Content: Wall Street Journal

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