AMR Corp had filed a bankruptcy and may merge to US Airway in order to be more competitive on size and costs. Being the fifth-largest US carrier, US Airway had tried to merge with Delta Air Lines Inc and United Airlines in 2006 but had failed. In our economics 183 class, we have discussed the great merger movement in the late 1800s and in the early 1900s. At that time, the merger movement was tends to be horizontal, which means firms with similar size would merge together in order to be more competitive. This is a bit similar to this case. However, in this case, AMR had filed a bankruptcy.
http://www.bloomberg.com/news/2011-11-29/us-airways-seen-as-possible-merger-partner-as-amr-strives-for-lower-costs.html
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