American-US Airways merger "may be imminent," analyst says

J.P. Morgan analyst Jamie Baker - who is known in the airline community as the analyst who asked former AMR chief executive Gerard Arpey "is this really all you've got?" on earnings call - said on Tuesday that he believes a merger between US Airways and American Airlines is imminent.

Here's what Baker said in a research note sent to clients on Tuesday:

"We expect LCC-AMR to happen. The problem is so does everybody else - What might have been a proprietary thesis last March (see our note here) has crescendoed to a consensus today; LCC & AMR may potentially merge and clarity is anticipated in the near term. But the courtship (far from amorous) has hardly been secret, with even labor unions tweeting updates on its progress," Baker said.

AMR chief executive Tom Horton has said previously that a merger decision could come within weeks. Both pilots unions at the two carriers have also recently approved a memorandum of understanding that deals with integration issues if a merger were to occur.

-Andrea Ahles

Read more here: http://blogs.star-telegram.com/sky_talk/2012/03/analyst-underwhelmed-with-amrs-standalone-restructuring-plan.html#storylink=cpy

Comments

[Sammie Sawee]

Hmmm...still don't see any benefit from a merger.

And why are they calling it a merger? Who is buying who??

[JUAN]

AMR THINKS THAT PEOPLE WALK BECAUSE OTHER PEOPLE WALKS

[WritingDude]

I live in Arizona and am stuck with US Air. I would LOVE for American to take them over so I would fly on a high quality airline again!

[Matt]

I hate flying to Charlotte or Phoenix when I want to go somewhere. Keep a hub at DFW and I wouldn't care if they merge with Emirates.

[David]

No one is buying anyone. I work for US Airways, and if any of you have been paying attention, its called a "merger". Not a buyout, or a hostile take over. We are merging.

70% of the total stock would go to the American creditors/stockholders, and 30% would go to the US Airways stockholders. The name of the airline would be American, based in Dallas. But, that does not mean American is "taking over" US Airways.