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American Airlines considers merger options
July 12, 2012

AMR Corp - the bankrupt parent of American Airlines - has confirmed it will consider possible options for a merger as it continued to battle back toward profitability.

The move is designed to placate creditors, many of whom are less than impressed with its standalone restructuring plan.

Possible acquisition targets include US Airways, JetBlue Airways, Alaska Air, Republic Airways’ Frontier Airlines, and Virgin America, reported Reuters.

A deal with US Airways is seen as the most lucrative.

Stakeholders in American have agued the combined carrier would offer a strong network to compete with rivals.

US Airways is also believed to be open to the deal.

“It now makes sense to carefully evaluate a range of strategic options, including potential mergers, which could make the new American even stronger,” American Airlines chief executive Tom Horton wrote in a letter to staff.

US Airways said it was pleased with the development.

“All we have asked for is a fair and balanced opportunity to present our plan versus others, and we are hopeful this is the beginning of such a process,” read a statement from the airline.

We remain confident that our plan will maximise value for all stakeholders.”

Source :- http://www.breakingtravelnews.com/news/