US Airways, AMR deal could come in next 2 weeks

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US Airways and AMR Corp are in final stages of negotiating a merger. (AP) US Airways and AMR Corp are in final stages of negotiating a merger. (AP)
SummaryUS Airways and AMR Corp are in final stages of negotiating a merger.

board would ultimately agree to Parker taking the helm.

Horton rebuffed an aggressive takeover push from US Airways early in the bankruptcy process, saying the airline preferred to exit court protection on its own and consider a deal later.

But after several months of talks with its own creditors as well as US Airways, Horton has softened his approach and agreed to consider all options.

A combined American-US Airways would give American the scale to match bigger rivals that are upgrading service and expanding international routes. The merged company would have revenue of $38.69 billion based on 2012 figures, in front of United Continental which had revenue of $37.15 billion last year.

The new American would have a solid presence on the important U.S. East and West coasts and on North Atlantic routes, given American's revenue-sharing joint venture with British Airways and Iberia.

American has hubs in New York, Miami, Chicago, Los Angeles and Dallas/Fort Worth, while US Airways has key operations in Phoenix, Philadelphia and Charlotte, North Carolina.

The case is In re AMR Corp et al, U.S. Bankruptcy Court, Southern District of New York, No. 11-15463.

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