Tags: amr | airline | merger | options

AMR to ‘Carefully Evaluate’ Potential Mergers, Other Options

Tuesday, 10 July 2012 04:46 PM EDT

American Airlines is ready to evaluate mergers and other restructuring options after assessing potential revenue and costs if it remains independent following bankruptcy, Chief Executive Officer Tom Horton said.

American, a unit of AMR Corp., discussed its view of possible options with its bankruptcy creditors committee today, Horton said, without being specific. The Fort Worth, Texas-based airline will begin contacting “interested parties” to lay out how American plans to proceed, he said.

“It is at this juncture that it now makes sense to carefully evaluate a range of strategic options, including potential mergers, which could make the new American even stronger,” Horton said in a letter to employees today. Smaller competitor US Airways Group Inc. is weighing a takeover offer.

Horton noted “strong” revenue in comparison with American’s peers during the past several months, improved operations, a tentative labor agreement that will be voted on by pilots and new contracts with five of seven groups represented by the Transport Workers Union.

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Tuesday, 10 July 2012 04:46 PM
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