So US Air wants to hook up with American Airlines
US Airways Group Inc. wants to hook up with American Airlines. Airline mergers often lead to higher fares for passengers and a cut in routes. But industry analysts said the union of American and US Airways makes sense and would help the two carriers compete against larger, recently merged competitors such as Delta Air Lines and United Air Lines.
"A combination of the two carriers would be positive for both of them and the industry," said Ray Neidl, an aerospace analyst at New York-based Maxim Group.
A Standard & Poor's report released Friday said US Airways would be likely to benefit more from the merger than would American Airlines, which has a larger fleet and more international routes than US Airways.
Three unions representing 55,000 employees of American Airlines — the Allied Pilots Assn., the Assn. of Professional Fight Attendants and the Transport Workers Union — signed agreements with US Airways, saying they support a merger and have agreed to contract terms under such a merger.
The announcement may have been made this week because American's parent company is scheduled to begin discussion of modifying its union agreements in Bankruptcy Court on Monday — a move its unions oppose.
But nothing is likely to happen any time soon because AMR has the exclusive right to propose a reorganization plan until Sept. 28.
US Airways pursuing merger with American Airlines - latimes.com