US Airways has officially proposed a merger to American Airlines, in a deal that could create the largest airline in the USA.
The all-stock deal would give bankrupt American creditors 70% and US Airways shareholders 30% of the new airline, according to reports by the Wall Street Journal.
American and US Airways both decline to comment.
Tempe, Arizona-based US Airways has pursued a deal with American since the beginning of the year, while Fort Worth-based American only said that it would entertain merger options in May. Executives of US Airways have said that the resulting company would retain the American name, be based in Fort Worth and be a member of the Oneworld alliance.