American Airlines and U.S. Airways Likely To Announce Merger

American Airlines and U.S. Airways Likely To Announce Merger
This combination of Associated Press file photos shows, left, passengers checking-in at an American Airlines ticketing counter in 2011, in Dallas, and right, a row of self-check-in kiosks in 2012, in Seattle. Many middle-class workers have lost jobs because powerful software and computerized machines are doing tasks that only humans could do before. (AP Photo)

DALLAS (AP) - Directors of American Airlines and US Airways reportedly plan to meet Wednesday to consider a merger.

The Wall Street Journal reported Monday that negotiators were still considering the makeup of the combined company's board and an exact role for the CEO of American parent AMR Corp.

US Airways and AMR declined to comment.

The companies are trying to finish a deal before Friday, when a confidentiality agreement covering some AMR bondholders expires. That could result in public disclosure about negotiation details.

If the two carriers were to strike a deal, it would create the world's biggest airline by passenger traffic, although United Continental Holdings Inc. would still be bigger if regional affiliates are counted.

AMR has been operating under bankruptcy protection since November 2011.

US Airways has pushed for months for a merger. AMR executives were initially reluctant, but the company's bankruptcy creditors urged AMR to consider a merger that they could compare to an independent American Airlines.

Shares of US Airways Group Inc. fell 29 cents, or 2 percent, to $14.46.

 

CEO and Co-Founder of Farecompare.com, Rick Seaney, tells Gregg and Manda depending on where you live, this could be good news for you.