US Airways Group (LCC.N) sees $1.5 billion in synergies from a potential merger with AMR Corp (AAMRQ.PK), the bankrupt parent of American Airlines, The Wall Street Journal reported on Tuesday.
US Airways has told creditors of AMR that a potential combination of the two carriers could generate roughly $1 billion in additional revenue and some $500 million in nonunion cost savings, the report said.
US Airways previously has said it hired advisers to explore a potential merger with AMR. The airline on Tuesday declined to comment on any talks that may be under way with creditors. "The process lends itself to many conversations, but we do not plan to confirm or disclose the substance of any of those conversations that may take place during that assessment," a US Airways spokesman said.
People familiar with the matter have told Reuters previously that unsecured creditors of AMR are concerned about the airline's plan to remain independent and want to explore benefits from a potential merger with US Airways or another carrier.
While there have been informal conversations between US Airways and members of AMR's unsecured creditors committee, the committee has been focused on examining the business plan presented by AMR management, and has not had formal talks with US Airways about benefits of a merger, these sources have said.
(Reporting by Kyle Peterson in Chicago and Soyoung Kim in New York; editing by Matthew Lewis)
Reuters
