US Airways, American Airlines Close To Merger Deal [Report]
The two airlines are currently negotiating a deal and neither airline has confirmed whether a deal will happen or not.
USA Today reports that the deal may be announced as early as next week, but other reports but the announcement a few weeks out.
Spokeswoman for US Airways, Liz Landau, stated that the airline has a non-disclosure agreement with American, preventing it from any comments on the situation. A spokesman for American Airlines also declined commenting.
Should they merge, the combined airline would be the largest in the world in terms of revenue. It would be worth more than $10 billion. United Continental is currently the biggest US airline by traffic, but that could also change if US Airways and American Airlines merge.
Forbes adds that the merger deal is not a guarantee and talks could fall apart at any time. But it appears that American Airlines’ creditors support the deal, so it is likely it will go through.
According to reports, the merger discussions are at an advanced stage. AMR (American’s parent company) Chief Executive Tom Horton and US Airways CEO Doug Parker, along with a small circle of advisers, are working together to negotiate the potential merger.
Should the merger go through, the majority of air travel in America would be under the control of American, Delta Air Lines, United Continental, and Southwest Airlines.
There is no confirmation from either company that a merger is in the works.