US Airways pursuing merger with American Airlines

US Airways announced its intention to merge Friday and said it had already lined up support from the largest labor unions at American Airlines. The agreement with the unions was not a formal merger bid but the most significant move taken by US Airways to unite with its larger competitor. US Airways did not explain whether it wanted to buy Fort Worth-based AMR or merge with the company. There was no price tag put on the proposal or a timetable for action. But American Airlines officials said they aren't interested in merger talks, and are working to restructure the air carrier and get out of bankruptcy protection. "We are making substantial progress in our efforts to return American to industry leadership, profitability and growth and maximize its value for all of its stakeholders," American spokesman Ed Martelle said. Shares of both air carriers changed little Friday, with US Airways stock dropping 17 cents, or 1.8%, to $9.34 and AMR sliding 3 cents, or 4.7%, to 55 cents. Airline mergers often lead to higher fares for passengers and a cut in routes. But industry analysts said the union of American and US Airways makes sense and would help the two carriers compete against larger, recently merged competitors such as Delta Air Lines and United Air Lines. "A combination of the two carriers would be positive for both of them and the industry," said Ray Neidl, an aerospace analyst at New York-based Ma