| NEW YORK
NEW YORK Jan 25 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
Representatives for AMR's unsecured creditors committee and
its bondholders group were not immediately reached for comment.