First of all AMR "American Airlines" has not operated as a real business I know for over 40 years. The management never really had control over their employees especially the union employees. The union protected a lot of lazy worthless employees. They "union" also has a lot of good employees who wanted to do their job , but got tired of carrying the lazy ones. Now lets forget about merging or buy out with another airline. There is never harmony among the two airlines. The two labor unions are fighting on who seniority will be used. I think the TWA employees got 1 year AA seniority for every 4 years they had at TWA. I will tell you they were not happy campers. Truthfully a lot of the employees were alway's trying to shaft the company for the past 40 years. It didn't matter if they got good pay raises which at times were not too bad or otherwise why still around a company that treats you so bad. I used to be proud to work for American Airlines when I was working there. Now I don't mentioned that I retired from them. The employees are the only ones that can make it work now, but maybe it is too late?
The salient labor conflict may never be resolved . in any case , a revitalization of American would require mega billions of high risk capital that is very unlikely to be forthcoming... The best option for the creditors ? a prompt liquidation , to at least salvage some percentage , rather than gamble on a road to nowhere merger .Much of American's assets are fungible and attractive to other carriers , of course at a reasonable price ...and without the liabilities .
All airline funding is "high risk" and has always been. That being said, there are several hedge funds very interested in funding American's exit. BTW, new aircraft were financed before the bankruptcy at favorable rates. Over 1000 FA's will soon be in the new hire ranks. Using words like fungible might be impressive to some but it does not make it true.