Coverage of the merger between American Airlines and US Airways

US Airways Stalls Plan for AA Merger

Airline continues to wait for bankruptcy process to run its course

By Frank Heinz
|  Thursday, Jul 5, 2012  |  Updated 12:04 PM CDT
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US Airways Stalls Plan for AA Merger

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US Airways is holding off on plans to merge with American Airlines, at least for now.

In a letter to employees on the Fourth of July, CEO Doug Parker said they will wait until American's bankruptcy proceedings conclude to pursue a merger.

In the letter, Parker wrote: "There is certainly no urgency for us to merge, so long as we are a given a fair chance to present our superior alternative in time to merge with AMR upon their emergence from bankruptcy."

Last week, American Airlines and creditors agreed to extend the airline's period of exclusivity through the end of the year.  Given that, Parker told employees it would be highly unlikely that American would emerge from bankruptcy before the end of the year and that talk of a potential merger will last for at least several more months.

Meanwhile, after recently completing negotiations on a 6-year deal with their pilot's union, American continues to work on new contracts with the unions representing flight attendants and mechanics.

American announced earlier this week they would resume negotiations with flight attendants and mechanics this week. Company pilots are expected to vote on a new contract in mid-July.

American filed for bankruptcy protection last November and in February announced a plan to elimate 13,000 union jobs as part of a cost-cutting initiative.


American Airlines Merger:
Complete coverage of the merger between American Airlines and US Airways into the newly-formed Fort Worth-based company, American Airlines Group (AAL). Click here for more.

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