Share price for AMR Corp., the bankrupt parent company of American Airlines, has been steadily rising on the growing chatter around a possible merger with US Airways.
The most-actively traded debt, $460 million of 6.25 percent convertible, unsecured notes due 2014, have almost quadrupled to 66 cents on the dollar from 17.75 cents on Nov. 29, when AMR filed for bankruptcy.
Also shares have also been boosted by record sales figures posted recently with the airline securing $6.45 billion.
Comair to shut down
Delta Air Lines has confirmed that it will shut down regional subsidiary Comair from September 29.
In a statement Delta said “While regional flying has and will remain a key component of Delta’s network, customer expectations and the unit costs of regional flying have evolved. In response, Delta recently announced its plans to reduce the total number of regional jets in its network while adding more mainline flying. This includes reducing the number of 50-seat regional jets from nearly 350 aircraft to 125 or fewer in the upcoming years. As a result of this reduction and changes to its customer-focused business strategy, Delta has made the difficult decision to cease Comair’s operations.”
AMR shares rise in support of possible merger
