Finally! Reuters reported about 90 minutes ago that US Airways has made an offere to buy bankrupt American Airlines, which would create an $8.5 bn airline:
Under the all-stock proposal US Airways made in mid-November at a meeting with AMR's unsecured creditors committee, the bankrupt airline's creditors would own 70 percent of the merged company and US Airways shareholders 30 percent, the person said.
US Airways and AMR are negotiating toward a potential merger agreement that could come as soon as January, the person added, asking not to be named because the matter is not public.
When the public-quiet period began back at the end of August, I thought it would take close to a year for the airlines to reach a deal. To me, an elite frequent flier on American, the merger is the best possible outcome, because it's the one in which I'm most likely to keep my banked miles and elite status. To American's pilots, mechanics, and flight attendants, it's the best possible outcome because they get to keep their jobs (mostly). And with American's unions supporting the deal, it will likely go smoothly.
January, huh? That would be fantastic.