US Airways and American Airlines have decided to sit down and talk about a merger, but in the meantime British Airways owner company IAG confirmed that they also have signed a formal agreement to take a look at the books of American Airlines. Due to US foreign ownership rules, if they were to buy a portion of the company they could only own a maximum 25% stake.
The US carriers have already signed legal documents giving them the right to exchange confidential information between the airlines, but both have stressed that this does not mean they are close to reaching a deal. The airlines released a joint statement that said neither company will make an announcement about the situation until both parties have officially made a deal or have officially terminated negotiations.
US Airways and AMR have agreed to evaluate a combination of options with reps but they will not talk about discussions until they have something to say. However, at the moment both companies are firmly stating that they cannot guarantee a transaction will come from their talks.
American Airlines is operating under Chapter 11 bankruptcy protection at the moment while US Airways is looking at securing an agreement to merge in alliance with three unions that represent American workers.
Doug Parker, the CEO of US Airways stated that they have signed a NDA with American and now IAG is taking a closer look at purchasing an American share if it is something that the airline would approve and if the shareholders were willing to approve the share purchase. For right now the fate of American Airlines is still up in the air.