Friday, August 31, 2012

American Airlines Opens Its Books to USAirways

USAirways and AMR, parent of American Airlines agreed on procedural issues for USAirways to perform due dilligence for a potential merger. There are still many obstacles in the way of a possible merger, including the banruptcy process and resolution of labor agreements. The biggest obstacle in our opinion remains to be the cultural differences between the two carriers. USAirways is actually the old America West Airlines that merged with US Air and assumed it's name. This acquisition tried to meld two disparate airlines and many years after this merger, some argue it is still not very smooth. Another reminder of how airline mergers can go awry happened earlier this week when United's reservation and check-in system crashed. www.premieretravel.com