Monday, January 7, 2013

Report: American not likely to decide on merger Wednesday

A report from Reuters says the board of American Airlines isn't likely to decide one way or another on a merger with US Airways at its scheduled meeting Wednesday.

AMR Corp., American's parent company, has been restructuring in bankruptcy since Nov. 2011. The company has been inching closer (sometimes being dragged) to a merger with US Airways since the latter carrier started pushing for a combination at the beginning of last year.

Now, the carriers are in confidential talks, hammering out memorandums of understanding with unions representing pilots and flight attendants, and the board of directors at Fort Worth-based American is set to discuss a merger on Wednesday.

However, as Reuters saidBut the people close to the talks told Reuters they do not expect the AMR board to formally choose one option over the other next week, as detailed terms of a deal, such as price and the new management team, have yet to be hammered out. There are currently no plans for an announcement after the meeting.

So, it looks like we could be in a holding pattern for weeks to come. Remember, AMR chief executive Tom Horton sent a letter to employees last week saying he expects the merger review process to wrap up in a "matter of weeks."

And to recap the "Why should we care in Charlotte?" question: US Airways operates about 90 percent of daily flights at Charlotte Douglas International Airport, its busiest hub, and has more than 7,100 employees based here.


Anonymous said...

This is the risk you take when you place almost all of your eggs in one basket!