American Airlines to explore merger options

AMR Corp, parent of American Airlines, bowed to pressure on Friday from its unsecured creditors, including its largest labor unions, and said it would explore merger options while it is still in bankruptcy. ...

(Reuters) - AMR Corp , the parent of American Airlines, said its business prospects have improved to the point equity holders might receive some value from its Chapter 11 reorganization. AMR, which filed for bankruptcy in November 2011, is weighing merging with rival US Airways Group Inc against exiting Chapter 11 as a standalone company. When companies go bankrupt, their stock is usually wiped out. AMR originally opposed the appointment of an equity committee in its Chapter 11 case because of an initial view that shareholders did not stand much chance of recovering anything meaningful. ...

(Reuters) - Labor groups at bankrupt American Airlines said on Friday they support a potential merger with rival US Airways Group Inc in a deal they say would save more jobs than a plan by parent AMR Corp to reorganize as a stand-alone carrier.

Directors at AMR Corp.’s American Airlines and US Airways Group Inc. approved an US$11-billion merger that will create the world’s largest carrier and shrink the U.S. industry to three dominant companies, people familiar with the matter said. The airlines’ boards voted today after the two sides agreed to final terms, said the people, who asked not to be identified because the talks are private. Those decisions set the stage for an announcement tomorrow, the people said.