American Airlines parent AMR and US Airways agreed to extend their merger deadline by about a month to allow for the antitrust case filed by the U.S. Justice Department to run its course.
US Airways CEO Doug Parker said he sees smooth skies for the proposed merger of his company with American Airlines following Wednesday’s clearance of the combination by a bankruptcy court judge overseeing American’s restructuring.
The boards of AMR Corporation and US Airways Group have unanimously agreed to move forward with the long-anticipated merger of their American Airlines and US Airways subsidiaries, the companies announced Thursday morning.
Notwithstanding US Airways estimates that a merger with bankrupt American Airlines would create at least $1.2 billion in new value for the combined companies, American continues to pursue its own path toward restructuring, arguing last week in bankruptcy court that it needs to void the contracts
US Airways has signed agreements with the three unions that represent nearly 55,000 American Airlines employees calling for all the parties to work collaboratively toward labor contracts should the two airlines merge.