Nov 14 The chief executive of bankrupt AMR Corp
, parent of American Airlines, told creditors that a
merger with US Airways Group Inc would need to result in
creditors receiving a large share of equity in a combined
airline for a deal to proceed, the Wall Street Journal reported.
Chief Executive Tom Horton made the comments as part of an
update on merger discussions during a gathering of the airline's
official creditors committee, which holds sway over how AMR will
exit bankruptcy, the Journal reported, citing people close to
AMR declared bankruptcy last November. The company has said
it must save more than $1 billion in labor costs to become
Horton expects American Airlines creditors to receive more
than 70 percent of the shares of a combined airline, the people
told the paper.