After weeks of repeated denials that it was even considering a merger with US Airways, American Airlines has agreed to "study" the prospects of a marriage between America's third and fifth largest air carrier by traffic.

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

American parent AMR Corp. says that the company and its bankruptcy creditors agreed to develop "potential consolidation ...

As American Airlines management continues to insist its goal is to emerge from bankruptcy as a stronger, leaner stand-alone airline, US Airways is upping the rhetoric on a potential merger:

Speaking on a conference call with reporters and analysts about US Airways' first-quarter earnings, Scott Kirby said a merger of his carrier and American parent AMR Corp (AAMRQ.PK) would generate more savings and revenue improvements than AMR's plan could produce on its own.

"There is a ...

Six months ago, in the Q3 earnings call for American Airlines, CEO Tom Horton responded to a question by TheStreet.com's Tom Reed about the possibility of "further consolidation" in the industry:

"Does that include you?" asked Reed.

"Yeah, it could," Horton replied.

Horton has more recently also said "For years I've said that I think consolidation has been — can be healthy and constructive for the U.S. airline industry." Yet he couched this comment within ...

Last week news started breaking out that US Airways has buy-in from the American Airlines (AA) unions to support a merger of the two airlines.  

So why would the American Airlines unions so agree to a merger?  And when someone comes out ahead, someone loses.   The answer?  Apparently Doug Parker has committed to the AA unions to just about anything they want and most important, seniority over the US Airways and America West unions.   ...

I am hearing some rumblings tonight that an announcement is coming as early as Monday morning that US Airways and American Airlines may officially tie the knot. With news on Friday that American Airlines' labor unions have thrown their support behind a deal with US Airways, this should come as no surprise.

Although I repeat this is only rumor, it appears the combined airline will take the American Airlines name, maintain its headquarters in Fort Worth, and be run by US Airways CEO ...

When US Airways recently turned its Philadelphia Envoy Lounge into a regular US Airways Club, it promised enhanced food offerings in the afternoon at all US Airways Clubs in Philadelphia. For those who do not remember, the Envoy Lounge was a premium US Airways Lounge for departing international business class passengers. It featured a wide-selection of food and complimentary alcohol and was one of my favorite lounges in the United States. While the enhanced food offerings are not quite as ...