American Airlines: will study merger ideas

American Airlines said Friday it is agreeing with creditors to consider potential mergers while it is still under bankruptcy protection.

American parent AMR Corp. said the company and its bankruptcy creditors agreed to develop "potential consolidation scenarios," but that didn't mean it would pursue a deal with any particular party.

Still, Friday's announcement suggested that events could be moving faster than AMR had expected since US Airways turned up the pressure for merger talks.

AMR chief executive Thomas Horton has said for months that he wanted American to emerge from bankruptcy protection as an independent airline. A bankruptcy judge granted AMR the exclusive right through late September to present a reorganization plan to the court.

Politicians including Texas' senior U.S. senator appealed for everyone else to leave AMR alone. New York's senior U.S. senator, Charles Schumer, expressed concern that a takeover would hurt air service and fares in upstate New York.

None of that political pressure deterred US Airways, a smaller competitor -- but a profitable one. US Airways has lobbied AMR's creditors and lined up support from American's three unions for a takeover.

On Friday hundreds of pilots and other employees marched into AMR headquarters in Fort Worth, Texas, and in Manhattan to deliver a message of "no confidence" in the company's management. The unions believe that a combined company would cut fewer jobs and stand a better chance at competing with industry leaders United and Delta.

Beverly K. Goulet, AMR's chief restructuring officer, said Friday's agreement to work with the bankruptcy creditors committee on potential merger scenarios represented no change in AMR's belief that its fate will be decided by company management, directors and creditors. She said the agreement "does not in any way suggest that a transaction of any kind or with any particular party will be pursued."

Others interpreted it differently. Jamie Horwitz, a spokesman for the Transport Workers Union, which represents mechanics and bag handlers at American, said he was pleased American would at least consider a merger while still in bankruptcy.