Categorized | Airlines

Report: US Airways brings takeover plan to AA’s creditors

Posted on 24 March 2012

Tails of US Airways and American Airlines aircraft as seen at Washington Reagan National Airport on April 22, 2009.


Get ready for the US Airways-American Airlines merger speculation to take off.


That comes after Bloomberg News reported today US Airways is “seeking support for a possible merger with AA and has discuss(ed) a takeover plan with some creditors of the bankrupt carrier and their advisers … .”


The Bloomberg story cited unnamed “people with knowledge of the talks,” but the report is the latest in an increasing number speculating that a US Airways-led merger may be in the works.


If the details in the Bloomberg report are accurate, then it would appear to represent an escalation of US Airways’ interest in American.


In its report today, Bloomberg writes:

Executives have laid out details of US Airways’ proposal for a combined airline to some members of the unsecured creditors committee and gotten a positive reception, said the people, who declined to be identified because the terms aren’t public. The goal would be to complete a merger before American parent AMR Corp. (AMR) exits Chapter 11, the people said yesterday.


But even before today’s Bloomberg report, writes US Airway already has been, “piece by piece, … very publicly starting to lay out its merger case, which is essentially that American is weak in the heavily populated East, while US Airways is strong.”


As background to that, notes US Airways CEO Doug Parker has said several times during the past month that any US Airways would back away from any hostile merger attempt.


“You can’t do it on value,” Parker is quoted as saying by at the airline’s media day on Wednesday. “You have to have the employees on your side.”


Stay tuned …

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