American Airlines Agrees to Study Merger Idea

Airline agrees to consider merger scenarios

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American Airlines says it is agreeing with creditors to consider potential mergers.

American parent AMR Corp. says that the company and its bankruptcy creditors agreed to develop "potential consolidation scenarios," but that didn't mean it would pursue a deal with any particular party.

AMR management has said for months that it wants American to emerge from bankruptcy protection as an independent airline, but that hasn't stopped US Airways, a smaller but profitable competitor, from trying to combine with American.

US Airways has lined up support from American's three unions for a takeover. The unions believe that a combined company would cut fewer jobs and be more competitive with industry leaders United and Delta.

Copyright AP - Associated Press
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