Report: U.S. Airways Once Again Considering A Merger Marriage, This Time With American

It hasn’t even been two years since U.S. Airways called off its pre-nuptial pillow talk with United Airlines, opting instead to remain single. And while it hasn’t rebounded as quickly as its spurned beau, who ran off with that Continental cad only a few shot months later, a new report says that U.S. Airlines is considering the possibility of a happily ever after ending with American Airlines.

According to Bloomberg News, in addition to their complimentary names, a merger between the two airlines could help both by using U.S. Airways’ domestic routes to feed travelers to American hubs for international travel.

Even though it’s technically the bigger airline of the two, American became a target for takeover when it filed for Chapter 11 bankruptcy protection in November. And according to the Bloomberg report, the folks at U.S. Airways have been considering the takeover without having any discussions thus far with the execs at American.

Only a few years ago, American was the largest of the major domestic carriers. However, the mergers of Delta with Northwest and United with Continental have pushed it to the number three spot on the list.

US Airways Said to Consider American Airlines Merger to Fill Revenue Gap [Bloomberg]

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U.S. Airways Opts To Stay Single, Ends Merger Talks With United
U.S. Airways CEO Says His Company Is Happy Being Single

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  1. The Lone Gunman says:

    This is being hashed out on various frequent flyer boards, with the general feeling that it won’t happen.

    • cowboyesfan says:

      A lot depends on the pilot group.

      If AA attempts to cut pilot salaries too much, the pilot group may look at offers from other groups. The pilot group hired a Wall Street investment company for a reason.

      Either way, AA is too small to survive alone.

  2. Cat says:

    US Air sounds a lot like a desperate 40 year old single woman. “My eggs are getting old. I’ll marry anyone!”

  3. steve6534 says:

    Now if they could only get the America West merger from 2005 completed… They still fly as they were separate airlines because of union contract problems.

  4. thomwithanh says:

    Didn’t we just go through this with the Death Star/ T-Mobile fiasco?

  5. thomwithanh says:

    I think its much more likely that American will continue as a separate airline, just not under the umbrella of AMR, probably reinventing itself as a discount carrier in the process

  6. humphrmi says:

    I don’t think US has enough of their own previous merger issues worked out to take on others. I don’t see any agencies standing in the way of this, but I do see the unions…

  7. gman863 says:

    If the justice department is foolish to allow this to happen, it will leave only four major donestic air carriers (US Airways, United, Delta and Southwest) – a decreased level of competition eerily similar to what would have happened if AT&T and T-Mobile had been allowed to tie the knot.

    Given US Airways’ shitty service, they would destroy any business traveler loyalty American has. When a merged US Airways eventually goes into financial freefall, I’m sure they’ll take GM & Chrysler’s cue and ask Uncle Sam for a huge bailout.

  8. jp7570-1 says:

    Please, god, not Agony Airlines (remember US Air when it was Allegheny?). There are other options that do not involve a further compression of carriers. For instance, American and parent AMR Corp are headquartered in Fort Worth, TX, same as TPG Capital (Texas Pacific Group). TPG has made its interest known in the past regarding an AA acquisition. This might make more sense than a shotgun wedding between American and US Air.

  9. wackydan says:

    I would welcome this… as a frequent flyer, I have miles on both… and AA is my company’s preferred airline… but I live at a US Air hub…. This would be a plus for me.