US Airways To Gobble Up American Airlines Following Bankruptcy Proceedings
US Airways and American Airlines are rumored to be in acquisition talks that would reduce the number of major airlines in the United States to just three.
According to various reports from industry analysts US Airways plans to acquire American as the company restructures and emerges from bankruptcy protection.
A Bloomberg report says the goal is to acquire the company before parent organization AMR exists bankruptcy for which it filed in November. The company recently received permission to extend its bankruptcy until Sept. 28 while AMR has promised to ask that labor union contracts be voided.
US Airways will likely argue that a merger is needed to allow the company’s to stay competitive following the mergers of United Airlines and Continental Airlines in 2010 and Delta Air Lines and Northwest Airlines in 2008.
The announcement of a merger shouldn’t come as a surprise as US Airways CEO Doug Parker this week made his desire to merge with the company known, telling reporters that consultants have already been hired to work on a bid. American Airlines however can not file competing plans during its bankruptcy period.
While the deal is far from over US Airways has already started buying internet domain names that would reflect a potential merger including usairways-american.com and american-usairways.com.
If the merger occurs it could be good news for travels in the East and West. In the East American has had a lackluster foothold after being squeezed out by Delta and United while US Airways could create a better front on the West with the help of American Airlines.
In the meantime the airlines industry has been on an upswing in recent months which could provide more reason for the two company’s to join forces while travel numbers are increasing.
Do you think US Airways and American Airlines would be a match made in heaven or a colossal mistake?
