American Airlines, US Airways begin merger discussions
US private aviation firms, American Airlines and US Airways have initiated discussions on a proposed merger of the new airlines.
Experts say that the passengers will not see any changes in the coming few months. Passengers of the two airlines should not be concerned as the two firms will not make changes to its schemes including frequent flier programs.
AMR Corp, which is the parent company of American Airlines, is facing bankruptcy and will continue to go through the prescribed the bankruptcy process. Permission is required from the Department of Transportation and the Justice Department.
It is believed that even after the merger, the joint entity will be able to run services under two brand names for several years. Some believe that the merged entity will be in a much better position to raise fares but passenger miles gained of the two airlines will be safe. The merger will also allow the companies to join networks and offer services to most destinations.
The US airline has seen several mergers in recent times such as Delta’s combining with Northwest, United with Continental and Southwest Airlines Co. with AirTran.