Report: US Airways begins process of possible American Airlines takeover
US Airways has filled out paperwork to begin the process of a possible takeover of American Airlines, CBS News reported.
US Airways CEO Doug Parker said in a letter to shareholders that the announcement doesn’t mean the airlines have agreed to merge. Instead, the 8K states only that the airline has come to an agreement with the three unions that represent American’s employees.
The announcement comes less than a day after unions at American Airlines prepared to give their blessing to a takeover by US Airways. The unions believe combining with US Airways would give the company the best chance to grow and save jobs.
However, Parker said that the proposed merger still has a long way to go. It needs the approval of American’s board of directors, management team and creditors. If the merger happened, it would form one of the largest airlines in the country.
AMR, the parent company of American Airlines, filed for bankruptcy protection last November. Since the announcement, the company has announced plans to fire more than 14,000 workers. AMR reported a $1.66 billion loss for the first quarter.