The parent companies of American
Airlines and US Airways signaled Friday that merger talks are moving
forward.
The two companies are taking a close look at each other's books
and exchanging confidential information, they said in a press
release.
AMR Corporation, the bankrupt American Airlines parent, said it
and US Airways Group were "working in good faith to evaluate a
potential combination." Talks between American Airlines, the largest
US carrier, and US Airways have been ongoing.
The statement said the companies did not expect to make any
further announcements until they either reached a decision to merge
or ended negotiations.
After the announcement the share price of US Airways rose 3 per
cent on the New York Stock Exchange in early trading. It has been
searching for a partner for months as most of its rivals have paired
up in mergers, which result in lower operating costs because the two
companies can share maintenance personnel and booking systems, among
other measures.
Earlier this year Delta Air Lines swallowed the smaller Northwest
Airlines, while United Airlines joined with Continental.
US Airways asnd American Airlines assured each other that during
their talks they would not negotiate with any other airline over a
merger. International Airlines Group - parent company of British
Airways and Iberia - had previously shown interest in American
Airlines.
American Airlines declared bankruptcy in November. It continues
operating under Chapter 11 bankruptcy, which grant companies
protection from creditors while they reorganize their debt.
