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Friday, January 25, 2013

US Air, AMR merger deal could come in next 2 weeks -sources, (NYSE: LCC)

US Airways Group Inc and American Airlines parent AMR Corp are in the final stages of negotiating a merger, with valuation and management structure being the two major sticking points left to resolve, four people familiar with the matter said. The two airlines, as well as AMR's creditors and its bondholders, have focused their efforts in recent weeks on reaching a merger agreement, and a deal could come in the next two weeks, the people said on Friday.Negotiations are continuing and could still fall apart, but progress has been made toward getting a deal done, the people said. An alternative plan for AMR to exit bankruptcy as an independent company appears a less likely path, they added.AMR's board, which has not made a final decision and still considers its own restructuring plan as a viable one to revive the airline, plans to meet on Jan. 28 and Jan. 29 to discuss latest developments in the negotiations, the people said.All the people asked not to be named because the matter is not public. US Airways declined to comment. An AMR spokesman said the carrier cannot comment on the status of the discussions.

US Airways Group, Inc. operates and owns passenger and freight airline carrier. Shares of LCC traded higher by 2.11% or $0.31/share to $14.98. In the past year, the shares have traded as low as $6.78 and as high as $15.64. On average, 5964800 shares of LCC exchange hands on a given day and today's volume is recorded at 8136255.