American Airlines and US Airlines Merger Decision To Be Made in the Next Couple Weeks

Yesterday AMR (the parent company of American Airlines) CEO Tom Horton sent a letter out to employees in regards to the talks on the merger with US Airways. In the letter, Mr. Horton does not disclose which way the merger talks are going to end but does state that they plan on coming to a final decision in the next couple weeks. The letter does give a little bit of an update to the recent developments of the talks which you can read for yourself at the bottom.

AA logoUS Airways logo

I think their is a good chance we will see a merger however it sounds like we will be finding out really soon. Just in case we do see a merger I will be including the US Airways Premier MasterCard on my 1st quarter churn. I already have a decent stash of AAdvantage miles and if the two airlines do merge the miles will almost certainly end up combined. If the merger doesn’t happen, I will still be able to make good use out of the miles anyway.

 

Letter to the employees:

Dear American Team:

As we start a new year, I’d like to thank you all for capping a year of extraordinary work by delivering for our customers during our busiest season. This dedication underscores why I have so much confidence in the future of the new American.

As you know, we continue the process we embarked upon months ago to carefully assess how we can deliver the greatest value for our stakeholders and the best outcome for our people and customers. Together with our Board, and the Creditors’ Committee, we asked our unions and those of US Airways to join the discussions underway in order to better evaluate the potential benefits, costs and risks of a potential merger. All parties are operating under a confidentiality agreement, and whiel I cannot provide any details, I can assure you we are conducting a collaborative, fact-based analysis to determine the best path forward for American.

As part of these joint efforts, last week APA announced that its Board voted to approve a proposed Memorandum of Understanding (MOU), which is now subject to review and approval by American, US Airways and the US Airline Pilots Association (USAPA), the union representing US Airways’ pilots. Discussions with our other unions and those of US Airways are also in progress. I have been personally involved in all deliberations regarding the overall strategic review and focused intently on creating a framework with the unions and for all our employee groups that keeps American competitive and allows us to build a successful future.

The proposed MOU will be reviewed alongside other factors under evaluation, as part of making an informed decision about whether a merger should be pursued.

I know many of you have questions about what happens next and how long this evaluation will be underway. While I cannot give you a precise date, I can tell you that we expect to bring this to conclusion within a matter of weeks. As we do, our objective is unchanged – to create the most value for our owners and the strongest possible American going forward. All of our efforts have been aimed at building on the extraordinary progress we have already made.

In just over a year, we have moved faster and performed better through our restructuring than any airline in history. Our collective efforts have created a strong foundation for the future of the new American, which is on course to become a premier global airline, equipped to compete against the best in the world. Staying laser-focused on serving our customers and running a great airline must remain our highest priority.

Thank you again for your commitment, and I look forward to sharing more information as soon as possible.

Sincerely,

Tom

 

Bookmark the permalink.

Let me know what you are thinking!