US Airways Filing Antitrust Paperwork to Boost American Airlines Bid
Airnation.net Newswire
In a move that indicates just how serious US Airways is in acquiring/merging with American Airlines, the Tempe, Arizona-based carrier is planning to file antitrust paperwork with government regulators to secure approval for a potential takeover according to a report by Reuters.
US Airways believes securing regulatory approval for its proposed deal would remove one key element of uncertainty from the picture, bolstering its case as AMR’s creditors compare the merits of a merger with the carrier’s standalone restructuring plan, said the sources, who asked not to be named because they were not authorized to speak publicly about the matter.
The fifth-largest U.S. airline first confirmed its interest in merging with AMR, the third-largest, in January.
The sources cautioned that the exact timing of a filing with antitrust regulators depends in large part on the status of AMR’s ongoing contract disputes with its three primary labor unions, and the timeframe could slip beyond July.
In addition, US Airways is hoping to make the antitrust filing with the consent of AMR and its creditors, under the bankrupt carrier’s recent agreement with its unsecured creditors committee to study alternative restructuring plans, the sources said. US Airways does not plan a unilateral filing, they said.
Category: Newswire
