Bloomberg News

American Airlines Doesn’t Need Merger, AMR Lawyer Says

May 25, 2012

AMR Corp. (AAMRQ:US)’s American Airlines can be strong as a standalone company and doesn’t need a merger with US Airways Group Inc. to survive, a lawyer for American said in court.

American needs a competitive cost structure, and union support for a merger shouldn’t factor into a judge’s consideration of American’s request to reject union contracts, attorney Jack Gallagher said today in U.S. Bankruptcy Court in Manhattan.

“The suggestion that there is a transaction likely with US Airways is wholly speculative, wishful thinking,” Gallagher said.

American and unions representing pilots, flight attendants and mechanics are in court today for closing arguments over AMR’s request to void labor contracts.

The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan)

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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