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Union Head Says Delay in AMR Case Boosts Takeover
APA president says delay may be to give merger talks more time
Tuesday, Oct 23, 2012 | Updated 2:30 PM CDT
The head of the pilots' union says the latest delay in American Airlines' bankruptcy case increases the chances that the company will be taken over, presumably by US Airways.
And Keith Wilson says the union's advisers believe that US Airways will pursue a merger even if American's management opposes a deal.
Wilson is president of the Allied Pilots Association, which favors a merger that would have US Airways management run the combined company. Wilson made the comments Monday night in a message to pilots.
American parent AMR Corp. asked for another month of exclusive rights to present a turnaround plan in federal bankruptcy court. Wilson says creditors may have pushed the delay to give merger talks more time.
AMR and US Airways Group Inc. have exchanged confidential financial information.
Neither airline responded to calls for comment.
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