U.S. Airways Begins its Fusion with American Airlines and Bankruptcy Proceedings
The U.S. airline U.S. Airways announced today that it has begun the process of merger with American Airlines (AA), a company with 55,000 employees and in bankruptcy proceedings.
President and CEO of U.S. Airways, Doug Parker, has advised its employees by letter that he had taken steps for the merger with the Securities and Exchange Commission U.S., as reported by CBS.
In addition, Parker reported that they have “signed the three unions representing workers in AA”
The announcement comes a day after its parent company of American Airlines, AMR, announced it lost 1,700 million dollars in the first quarter, more than four times in the same period of 2011 and attributed to the costs of restructuring its business.
AA, which is the third largest U.S. airline that filed for Chapter 11 Bankruptcy Law in November 2011, had said on occasion that he wanted to overcome the bankruptcy process and move forward alone.
With this new announcement, the field of American Airlines takes another step in the restructuring following the merger in 2010 by United Airlines and Continental Airlines, and two years before Delta Air Lines and Northwest Airlines.
Parker, in the letter sent to employees of U.S. Airways says it has already signed agreements with the unions of pilots, flight attendants and the transport, also have issued a statement showing their support for the project.
“First of all, this news does not mean we have agreed to merge with American Airlines. Just means that it has reached agreements with those unions on how they see their collective agreements and that the merger would like to work with us to make it happen,” adds Parker in his writing.
He noted that now is “to earn the support of AMR’s creditors, its management team and board of directors. Obviously is an important step on the road and look forward to working for that to happen.”
The joint statement issued by the three unions said that “a merger between American Airlines and U.S. Airways is the best strategy and quickest option to complete the restructuring” of the first.
They also believe that the merger “provides the best route for everyone, including employees” of both airlines.
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