US Airways confirms it is investigating American Airlines merger
US Airways has confirmed it is investigating the possibility of a merger with American Airlines.
US Airways has confirmed it is investigating the possibility of bidding for American Airlines and has contracted merger and acquisition advisors to assist in this.
During a conference call with investors and analysts, US Airways' chief executive office Doug Parker stated the organisation has hired the Latham & Watkins law business, financial and services firm Barclay's Bank and restructuring enterprise Millstein & Co to enable it to look into the proposal.
Referring to American Airlines' troubled parent company AMR Corp, Mr Parker stated: "I am aware that there is a good bit of speculation about our company as it relates to AMR's bankruptcy."
Although a consolidation is not "imperative", US Airways is "always interesting in studying potential value-enhancing opportunities", he added.
The firm's advisors will be researching the prospects of the merger, but it is not thought there will be any major developments so this process will take "quite some time", Mr Parker said.
Recently, sources close to the situation told Reuters that a bidding war for ownership of American Airlines could take place between Delta, TPG Capital and US Airways.
Posted by Ken Hayes
Source: Press reports, January 25th