US airlines move closer to merger

By GARETH MACKIE
Published on 01/09/2012 00:00

American Airlines and rival US Airways moved one step closer to a potential merger yesterday after the companies signed legal documents allowing them to confidentially exchange information.

British Airways’ parent company International Airlines Group has also signed a non-disclosure agreement with American, allowing it to look at the company’s books, although foreign investors are prohibited from owning more than 25 per cent of a US airline. BA and American already have a joint business agreement for flights across the Atlantic.

American’s owner, AMR, entered bankruptcy protection in November 2011. The group said it was “now looking at other strategic options that could make the new American even stronger”.