Tags: amr | airline | merger | options

AMR to ‘Carefully Evaluate’ Potential Mergers, Other Options

Tuesday, 10 July 2012 04:46 PM

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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