US Airways is pushing for a merger with America Airlines.
March 24, 2012– Insiders report that US Airways is reportedly talking with American Airlines’ creditors about the possible merger of the two airlines. The possible deal would cut the number of big airlines in the country to only three.
Industry analysts and published reports said that US Airways has made plans to take over American. Currently, American is running its operations under bankruptcy protection. US Airway wants to acquire American before AMR, the parent company for American, exits bankruptcy protection. AMR filed for protection last November and recently was able to extend the deadline for filing its plan of reorganization until September 28.
US Airways will most likely argue that it and American would be much stronger as one than remaining as two competitors. Of late, there has been a period of consolidation in the airline industry. The most recent merger was between Continental Airlines and United Airlines that took place in 2010. Prior to that, Delta Air Lines combined forces with Northwest in 2008.
US Airways has already purchased domain names on internet that reflect both airlines’ names. A merger between the two would give American more presence on the East coast where United and Delta have squeezed them out. In addition, it would give American sturdy ground in the West.