(NEW YORK) — US Airways is reportedly in talks to takeover the now bankrupt parent company of American Airlines, AMR Corporation.
People familiar with the discussions told Bloomberg that proposals for the merger, laid out by US Airways executives, received a positive reception from some of the bankrupt carrier’s creditors.
According to the sources, the goal is to combine both airlines before AMR exits Chapter 11.
Talks of the possible takeover come four months after AMR filed for bankruptcy protection. After years of losses, the company filed for Chapter 11 on Nov. 29 “in order to achieve a cost and debt structure that is competitive in the airline industry.”
Copyright 2012 ABC News Radio
Kathryn Vasel, CNN
Magdala Louissaint, KPVI
Aaron Smith and Evan Perez, CNM