This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

US Airways Mulls Non-Disclosure Agreement With AMR (Update 1)

This story corrects an earlier version that said the US Airways board has decided to sign a non-disclosure agreement

CHARLOTTE, N.C. (TheStreet) -- The board of US Airways (LCC) is considering whether to sign a non-disclosure agreement with bankrupt AMR (AAMRQ.PK), which would enable the two carriers to confidentially share financial information.

"We received a (non-disclosure agreement) and are reviewing it," US Airways spokeswoman Michelle Mohr said Tuesday.

In an email to members Monday night, the U.S. Airline Pilots Association said the airline's board "had approved signing a non-disclosure agreement." But in a correction issued Tuesday, USAPA spokesman James Ray said that did not occur. "US Airways has in fact been asked by AMR, as a sign of good faith, to cease union negotiations and behave as if the NDA has already been signed," Ray said. "US Airways has agreed to honor that request."

A non-disclosure agreement would impose conditions on the carrier including restrictions on its ability to discuss merger issues with labor groups.

At the heart of US Airways' merger effort is a working relationship with American Airlines' labor unions. Also, US Airways has been negotiating a memorandum of understanding regarding contract terms with its own pilots, members of the U.S. Airline Pilots Association. With a non-disclosure agreement, those relationships would become less open.

Negotiators for USAPA had expected to talk with US Airways executives this week regarding the memorandum of understanding.

AMR filed for bankruptcy protection in November and initially resisted merger overtures from US Airways. However, CEO Tom Horton said in July, apparently at the behest of creditors, that the carrier would be open to signing non-disclosure agreements with several potential partners, including Alaska (ALK), JetBlue (JBLU), Frontier and US Airways.

Only US Airways has expressed interest in a merger. But it has been hesitant to sign a non-disclosure agreement.

Last week, US Airways President Scott Kirby and CEO Doug Parker met with the editorial board of The Arizona Republic. Kirby told the board, "We're hopeful that we'll be in a consensual process, maybe sometime soon." But Parker also raised the possibility that US Airways might decide it did not want to agree to the terms of the agreement and said that if that decision were made, "we'' try and do something. You'll see something else."

>To contact the writer of this article, click here: Ted Reed

Stock quotes in this article: ALK, AAMRQ.PK, JBLU, LCC 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs