American Airlines Moves to Slow Merger Momentum

Written By Unknown on Selasa, 12 Februari 2013 | 12.13

AP

People with knowledge of the high-level talks said CEO Tom Horton was pushing for more time and hadn't yet accepted a lesser position with a combined company. One person suggested he was actively working to kill the deal.

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Just as American Airlines and US Airways appeared ready to announce a merger in the next few days, some insiders suggest that timeline could be pushed back because of resistance from American's top executive.

People with knowledge of the high-level talks said CEO Tom Horton was pushing for more time and hadn't yet accepted a lesser position with a combined company. One person suggested he was actively working to kill the deal.

Nobody wanted to be named because of the sensitivity of the negotiations.

Under the merger scenario described to NBC 5 and widely reported, US Airways CEO Brian Parker would run the combined airline. Horton would be named non-executive chairman for a period of one or two years.

Some board members appeared to be pushing for Horton to have a more meaningful role in the new company. His supporters on the board believe he has done a good job guiding the airline through the difficult bankruptcy process.

But now, if Horton is actively opposing the merger plan, board members appear to face a choice: Support Horton or support a merger.

The drama not only could delay the planned merger, it also could boil over publicly if members of the influential creditors committee move to replace American's board members.

Horton replaced former CEO Gerard Arpey when American declared bankruptcy in November 2011.

When talk of a merger first surfaced, Horton said he preferred to wait until American exited bankruptcy as a standalone company.

Pressured by creditors, Horton then agreed to consider the idea and entered into confidential talks with US Airways and others.

US Airways executives wooed American's employee groups with offers of higher pay and benefits. AA's union leaders, who have had a testy relationship with management for years, jumped on board with the merger idea.

US Airways' executives have said if they are successful, they would keep the airline's headquarters in Fort Worth. The company would also keep the American brand. The name US Airways would go away.

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