Report: US Airways Considering American Airlines Merger

Categories: Industry News | News

In further signs of the consolidation trend in the domestic airline industry, Bloomberg reports that US Airways is considering a future bid for American Airlines.  The bid, which would have to take place after AMR exercises its exclusive right to file a reorganization plan, looks to bolster American’s struggling hub network. 

American has cut back flight schedules to the detriment of its business travel business, and left the airline without adequate traffic at its hub airports.  The US Airways plan would solve that problem, and by merging the third and fifth largest airlines, create a carrier capable of going head-to-head with current industry leaders United/Continental and Delta Airlines.

For the full report visit the Bloomberg article here.