US Airways chief seeks investors’ nod

The top executive of US Airways Group sought to bolster shareholder support for a proposed merger with bankrupt American Airlines (AMR), saying the financial community already likes the idea and the two airlines would make a strong combination. Speaking at the No. 5 US airline’s annual shareholder meeting in New York, Chairman and CEO Doug Parker said a tie-up with American would create “an airline that can compete with anyone, that can be the best airline in the world.” The meeting was broadcast over the Internet. US Airways disclosed its interest in merging with American in January. American’s parent, AMR Corporation, filed for bankruptcy protection in November of last year. Earlier this week, sources told Reuters that US Airways is hoping to file financial documents with US antitrust regulators as early as July for the proposed merger with AMR Corp. Parker said a merger would make the combined carrier much stronger in areas where both carriers individually are currently weak. He added that US Airways’ stock price, which has more than doubled this year, has been aided by financial community support for the proposed merger. Shares of US Airways rose 4.3 per cent to $12.48 on Thursday on the New York Stock Exchange. Parker said American had lost market share in certain areas of the United States “because they’ve sat out consolidation.” He said mergers have helped airlines become more profitable in recent years. Although American parent AMR has said it prefers to exit Chapter 11 as a standalone carrier, it did reach an agreement with its unsecured creditors committee last month to explore various merger scenarios in bankruptcy. From gulftoday