US Airways has made no secret of their desire to merge with American Airlines. But until recently their interest has mostly been sporting. That all changed recently, however, as they became a secured creditor of AMR, the parent company of American Airlines.
US Airways now owns one million dollars of AMR bonds, a stake they picked up for a reported $600,000. While AMR is decrying the move as a publicity stunt (and they’re probably right in part), there is a very real benefit to US Airways with this move. As a creditor they are now given a seat at the table and they are eligible to file briefs to the court regarding the reorganization process. They availed themselves of that eligibility this past week, filing a statement in support of the plan for AMR to remain independent for now while continuing the reorganization process. The statement is pretty much worthless with respect to the legal proceedings but it sure is funny to read. Especially the parts about how everyone knows that US Airways is trying to merge with AA and how this is helpful to them, too.
A nod to Ben over at Things in the Sky for picking up on this one. Definitely interesting reading headed into the weekend.
Related Posts:
- US Airways reaches labor agreement…with American Airlines’ unions
- Unions grab a stronghold in American restructuring
- Some more thoughts on today’s bAAnkruptcy filing
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