US Airways, American Airlines are one step closer to merger

The Associated Press reported that US Airways has, in fact, struck deals with unions at American Airlines to win their support for a possible merger.

American is currently in bankruptcy, reporting more than $1.5 billion in first quarter losses. Unions representing 55,000 pilots, flight attendants and mechanics are angry the airline is trying to eliminate jobs as part of costs cutting measures. 

Doug Parker, the chief executive of US Airways, said a merger “represents a unique opportunity we should not ignore,” The New York Times reported.

The announcement, which has taken the industry by surprise, comes days before American is due in bankruptcy court to void its existing union contracts in a plan to eliminate 13,000 jobs.

American Airlines CEO Tom Horton addressed the issue of "takeover speculation" in a letter to employees Thursday which he said was "fueled by those who seek to serve their own agendas."

Denny Kelly, a former pilot and industry analyst, told CBS News that US Airways would get a tremendous airline "for pennies on the dollar."

"They get some international routes they can't get on their own that are worth millions and they get a good domestic structure that they don't have the people or the equipment right now to fly," said Kelly.