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The Latest on What's Shaking with US Airways and American Airlines

April 26, 2012 at 9:00 AM | by | ()

Hold onto your frequent flyer miles, as it sounds like American Airlines and US Airways are getting closer and closer to shacking up. Cleary they are jealous over how happy United and Continental have become as a happy couple, and they must have heard some loving tales from both Delta and Northwest Airlines. Well it’s hardly a done deal as of yet, but it does seem as if things are starting to get somewhat hot and heavy between the two carriers.

The biggest news over the last week or so has to do with all the union contracts. The paperwork and people over at American Airlines and their unions seem to be totally cool with the idea of a merger. The three biggest unions have all signed the papers and agreed to the policies, so that’s quite an accomplishment considering that the proposed merger is still very much on the drawing board.

US Airways still has to convince its people, including the board of directors over at American Airlines, that a combined effort is the best way for each airline to move forward.

US Airways is already running the numbers, and they’re thinking that a merger could generate around $1.2 billion bucks per year. That’s certainly a lot of in-flight snacks and beverages, but even with all that extra cash we doubt they’ll be tossing passengers any complimentary peanuts or pretzels.

Again, things are still very much in a state of flux, and that’s especially the case now because the CEO over at American Airlines isn’t exactly keen over the idea of the merger. He thinks that the airline will come out of bankruptcy as a leaner, meaner airline, and that’s there’s no benefit from getting together with the competition. We’ll see what shakes down over the next few weeks and months, but we do know one thing—they’ll be sticking with the American Airlines name.

[Photo: gTarded]

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