July 13, 2012
Today, analyst Brendan Byrnes discusses a potential merger from American Airlines parent company AMR. Although the company still plans to explore remaining independent, it recently said that it will consider mergers and restructuring options. US Airways, which has publicly stated its desire for merging with American, is the most likely choice for a partner and is already beginning to lay the groundwork. The industry overall has seen a lot of mergers recently, and US Airways investors cheered this possibility heartily ever since rumors emerged. Still, this remains a very difficult industry for investors. Watch the video below to see why Brendan thinks long-term investors should stay away from the industry.
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