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February 19, 2008 |
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AMR CORP: Mulls Potential Tie-up With Continental Airlines American Airlines' parent AMR Corp. is deliberating over a likely consolidation with Continental Airlines Inc., according to Susan Carey of The Wall Street Journal, citing people familiar with the primary talks of the two carriers. As reported in the Troubled Company Reporter on Feb. 8, 2008, United Airlines Inc. could end up marrying Continental Airlines in the event of a merger, instead of with Delta Air Lines. According to WSJ, exploratory merger talks between United and Continental have grown serious. Moreover, the merger talks between Delta Air and Northwest Airlines Corp. have intensified that could lead to an agreement in the next two weeks. However, key details of the Delta-Northwest deal have yet to be hammered out and negotiations could still fall apart. About Continental Airlines Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/ -- is the world's fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,900 daily departures throughout the Americas, Europe and Asia, serving 144 domestic and 139 international destinations. More than 500 additional points are served via SkyTeam alliance airlines. With more than 45,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with Continental Express, carries approximately 69 million passengers per year. About AMR Corporation Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/ -- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, including Brazil, Europe and Asia. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. * * * As reported in the Troubled Company Reporter on Nov. 30, 2007, following the announcement by AMR Corp. that it intends to divest its American Eagle Holding Corp. subsidiary in 2008, Fitch expects no near-term impact on the debt ratings of AMR and its principal operating subsidiary, American Airlines Inc. Fitch affirmed both entities' Issuer Default Ratings at 'B-' on Nov. 13, 2007, while revising the Rating Outlook for AMR to Positive. |
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