You know that feeling like you just can’t wait to get married, so that you can finally become the world’s largest airline, but there’s this whole bankruptcy thing in your way? Probably that’s not something you’ve been worrying about, but it has been on the mind of American Airlines’ parent company, AMR Corp. It filed formal plans to exit bankruptcy, bringing it one step closer to walking down the aisle with US Airways.
Today American Airlines and its betrothed, US Airways had to defend their proposed merger in front of a Senate hearing and several consumer advocates. Citing higher fares, reduced service to smaller communities in the U.S. and a loss of competition among carriers, opponents of the impending nuptials testified at a Judiciary Committee hearing that such a joint venture would hurt consumers.
According to a flurry of media reports in the Dallas area, it sounds like American Airlines and US Airways are finishing up a few last-minute details while deciding whether or not they want to stop flirtin and just ahead and tie the knot with a merger. If the union does go through, the combined entity would be the biggest airline in the skies. It’s all very romantic, really (except when someone else’s wedding is involved). [More]
Bankrupt American Airlines has flirted with a few options for mergers in the past, and now it’s being reported that its pool of suitors has grown to at least five potential hookups: US Airways, JetBlue, Alaska Air, Frontier Airlines and Virgin America. Its parent company AMR said it will be moving ahead on evaluating potential mergers and will be in touch with those interested, in order to soothe some of its creditors who aren’t so happy with a stand-alone restructuring plan.