AMR-US Airways reportedly close to merger deal

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Published reports indicate a merger  agreement  between US Airways and American Airlines is near.

Multiple news organizations  reported that the deal could be announced in the near future, perhaps next week.

The merger would create the world’s largest airline. American is currently in Chapter 11 bankruptcy proceedings as it works to restructure its debt and labor contracts.

The possible  merger is causing concern in the Delaware Valley, home of  the largest hub of US Airways, although industry experts say the company is making money from its Philadelphia operations. The hub is often described as a “fortress hub” with a market share that is so large that critics claim it discourages other carriers from going-to-head with US Airways.

Southwest Airlines has sharply cut back operations in Philadelphia after earlier dropping flights to New England and Pittsburgh. Jet Blue is expected to take on US Airways this spring with flights to Boston. The new service is expected to trim hundreds of dollars off fares for business travelers.

The airline is expected to be headed by Doug Parker, the current CEO of US Airways, which is based in Tempe, Ariz. The combined airline is likely to carry the name of American, which has begun repainting planes in a new color scheme.

US Airways is believed to employ hundreds of Delawareans.

Click on THIS LINK  from  CBS News.

 

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