Meeting of AMR board is temporarily delayed

Posted Monday, Feb. 11, 2013  comments  Print Reprints
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Directors of AMR Corp. have temporarily delayed a meeting to consider a merger between American Airlines and US Airways, The Associated Press reported Sunday, as the two sides continue to hammer out final details.

A source close to the matter told the AP that the AMR board, which had been expected to meet today, wants to meet in person, and that the US Airways board would only meet after the AMR board approves a deal. The source requested anonymity because the talks are private.

Last week, sources told the Star-Telegram that the AMR board was preparing to meet early this week to decide on the merger, with a decision to be announced sometime this week. Bloomberg News, which reported Friday that the AMR board would meet today, reported Sunday that an announcement would now come no earlier than midweek, according to people familiar with the matter.

The sources told the AP that negotiations are continuing on issues including the exact role that AMR CEO Tom Horton will play in the combined company. Discussions were centered on Horton being a nonexecutive chairman while US Airways management, led by CEO Doug Parker, would run the day-to-day operations of the new carrier.

Any deal would require approval of the U.S. Bankruptcy Court. AMR has been operating in Chapter 11 bankruptcy since November 2011.

US Airways has been pushing for a merger since last spring, winning the support of American's unions and creditors. Meetings have been going on for weeks as the executives at both companies, along with American's unsecured creditors committee and an ad hoc bondholder group, have tried to reach a deal before the Feb. 15 expiration of a nondisclosure agreement with bondholders. While the nondisclosure agreement could be extended, bondholders have been pushing for a quick deal since the agreement restricts them from trading AMR or US Airways debt.

Staff writer Andrea Ahles contributed to this report, which includes material from The Associated Press and Bloomberg News.

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