US Airways announced on Friday that it has signed a non-disclosure agreement with American Airlines' parent company AMR Corp.
The agreement allows the two carriers to exchange confidential and financial information and "work in good faith to evaluate a potential combination," US Airways and American said in a joint statement.
Additionally, the carriers said they do not expect to provide updates on the status of discussions until a deal has been made or talks break down.
"Furthermore, AMR and US Airways have each agreed while they are evaluating a potential combination that they and their representatives will not engage in discussions with other parties concerning a potential combination of AMR and US Airways," the statement said. "The companies noted that there can be no assurance that a transaction will result from these discussions."