US Airways and bankrupt AMR evaluate potential merger
01 September 2012
AMR Corp, the parent company of American Airlines, and US Airways Group Inc are evaluating a potential merger aimed at creating a carrier on par with the world's largest airline United Continental Holdings.
Both the US carriers yesterday announced that they have ''entered into a non-disclosure agreement, under which the companies have agreed to exchange certain confidential information and, in close collaboration with AMR's Unsecured Creditors Committee, to work in good faith to evaluate a potential combination.''
The companies said that they will not provide any further information regarding the discussions until they have entered into a transaction or terminated the proposed merger talks.
''Furthermore, AMR and US Airways have each agreed while they are evaluating a potential combination that they and their representatives will not engage in discussions with other parties concerning a potential combination of AMR and US Airways.
The companies noted that there can be no assurance that a transaction will result from these discussions, the release added.
Fort Worth, Texas-based AMR had filed for bankruptcy in November 2011, and had later said that it would enter into merger discussions with rivals only after it emerged from Chapter 11 bankruptcy protection, but changed its mind in June and said that it would look at a combination even as it continues to work on being a stand-alone company.