NEW YORK – US Airways Group Inc and American Airlines parent AMR Corp are in the final stages of negotiating a merger, with valuation and management structure being the two major sticking points left to resolve, four people familiar with the matter said.
The two airlines, as well as AMR's creditors and its bondholders, have focused their efforts in recent weeks on reaching a merger agreement, and a deal could come in the next two weeks, the people said on Friday.
Negotiations are continuing and could still fall apart, but progress has been made toward getting a deal done, the people said. An alternative plan for AMR to exit bankruptcy as an independent company appears a less likely path, they added.
AMR's board, which has not made a final decision and still considers its own restructuring plan as a viable one to revive the airline, plans to meet on January 28 and January 29 to discuss latest developments in the negotiations, the people said.
All the people asked not to be named because the matter is not public. US Airways declined to comment. An AMR spokesman said the carrier cannot comment on the status of the discussions.
Representatives for AMR's unsecured creditors committee and its bondholders group were not immediately reached for comment.
(Reporting by Soyoung Kim in New York, additional reporting by Nick Brown in New York and Karen Jacobs in Atlanta; Editing by Gary Hill)