US Airways seeking to take over American Airlines
US Airways is reportedly in talks for a possible merger with American Airlines.
American is currently restructuring through bankruptcy.
A deal is hoped to be reached before AMR, American’s parent company, exits the proceedings. AMR filed for bankruptcy in November. However, it received an extension of its filing deadline until Sept. 28.
United Airlines and Continental Airlines merged in 2010, while Delta Air Lines and Northwest Airlines did the same in 2008.
“This isn’t a marriage made in heaven, like Northwest and Delta, or Continental and United,” aerospace analyst Ray Neidl said. “But US Airways is the last girl on the dance floor right now.”
An American merger with US Airways would allow for an improved presence in the East.
“I know there are a lot of rumors and speculation going on about US Airways and many of you want to hear our views,” US Airways CEO Doug Parker said. “That work continues and that’s where we are — and that’s where I suspect we’ll be for quite some time.”
Parker added that US Airways is in no immediate need for a merger.
“Having said that, it might make sense to do something,” he continued. “It could be in our best interests to have a bigger airline with stronger revenues and it could give us more stability. And because it might make sense, we are looking at it.”