US Airways Group is making "great progress" toward a merger with Fort Worth-based American Airlines and has won backing on Wall Street for a takeover bid, Chief Executive Officer Doug Parker said.
American's push to restructure in bankruptcy as a stand-alone carrier won't be enough to fix weaknesses at the third-largest U.S. airline, including a loss of market share, Parker said today at US Airways' annual shareholders meeting in New York.US Airways has received "tremendous" support from bondholders and analysts for a merger with American, Parker said.Parker's comments extended his public pressure for a tie-up with American, which has said it wants to exit Chapter 11 and then consider a combination, with itself as a likely acquirer. US Airways, based in Tempe, Ariz., has reached tentative agreements on contracts with American's three largest unions and is working to build support among AMR's unsecured creditors.American has asked a U.S. bankruptcy judge to terminate existing labor contracts for most of its union groups and allow the company to impose new terms. The judge is expected to make a decision on the Section 1113 request next week.Shares of US Airways rose 4.3 percent to $12.48 at 10:17 a.m. in New York. The shares have more than doubled this year.Have more to add? News tip? Tell us
