Horton Says The Company Could Look To Private Equity
AMR Corporation is nearing its exit from Chapter 11 bankruptcy proceedings, according to CEO Tom Horton, and could be willing to accept private equity to help bring the company back to solvency.
Bloomberg Business Week reports that Horton said in an interview that he has not yet determined whether the airline would do best as a stand-alone carrier, or if it should merge with suitor US Airways. American is currently the nation's third-largest airline.
Horton said that the final capital structure for the airline is still being developed, and that he is open to discussions with a private-equity partner. He predicted that the company would "have industry-leading margins" that would make it an attractive investment.
If AMR merges with US Airways, the move would make the combined airline the world's largest based on passenger traffic. United Continental Holdings currently holds that distinction. The merger talks have been going on since January, and a merger is supported by American's pilots' union. The Allied Pilots Association reached a new labor agreement with American last week.