US Airways In Talks For American In Bankruptcy

The interest in acquiring American Airlines has been high ever since they filed for bankruptcy late last year. As one of the nation’s leading airlines, anyone acquiring American stands to gain a huge chunk of market share in the industry. The frontrunner these days is US Airways, who is reportedly in talks with many of American’s creditors over the idea of a possible merger.

Two Become One?

Mergers, buyouts, auctions and severe company cuts have all been the hot topics surrounding the American bankruptcy case. However, American has met some staunch opposition over some of their ideas for debt restructuring, some even leading to employee protests and consumer cry outs. With the jobs of thousands of employees, the fate of future routes and consumer services on the line, American has not had an easy time of deciding how to proceed.

American officials aren’t necessarily on board with the merger, as their current plan is to continue restructuring efforts such as voided labor contracts and some employee pension plans. Although US Airways has put forward their plans to acquire American, they must work quickly. They need to secure a deal with creditors before American exists Chapter 11, if they are to have a chance at merging.  If US Airways acquires American in the process, the competition among airlines would tighten significantly to three top players.

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