US Airways and American near tie-up American Airlines is putting the finishing touches to its merger with US Airways to create the biggest US carrier by revenues in a deal expected to be announced this week. Since August, AMR, American's parent, has been engaged in merger talks with US Airways that would allow the enlarged group to overtake its rivals United Continental Holdings and Delta Air Lines. Two people close to the situation said a merger between AMR and US Airways - the third and fifth-largest US carriers by revenue - was close to being finalised. However, the parent of British Airways has declared it is "increasingly unlikely" to buy a minority stake in American as part of its planned exit from Chapter 11 bankruptcy protection. Having last year raised the prospect of investing in American, International Airlines Group is now playing down the possibility of taking a minority stake, partly because it has not been encouraged to make such a move by the US carrier. AMR has also been attempting an ambitious restructuring - it filed for Chapter 11 bankruptcy protection in November 2011, in order to cut its high operating costs and large debt load. The airline's progress in Chapter 11 was highlighted at its annual results last month, when it reported an operating profit of $107m, a marked turnround from a loss of $1.1bn in 2011. The boards of AMR and US Airways are due to convene this week to approve the merger terms. The main sticking points are mostly resolved, although one person familiar with the matter stressed there were still some outstanding issues. First, in what is expected to be an all-share merger, the division of ownership inside the combined company between AMR's creditors and US Airways" shareholders has been a bone of contention. US Airways was pushing for its shareholders to own 30 per cent of the merged entity, but AMR has been arguing that these investors were entitled to a smaller percentage. The likely final position could leave AMR's creditors with 72 per cent of the combined company's equity, with US Airways" shareholders holding the remainder. Second, the senior positions at the new company have also been an issue. Doug Parker, chairman and chief executive of US Airways, was seeking the same two roles at the merged entity. However, Tom Horton, chairman and chief executive of AMR, is due to become non-executive chairman of the merged entity until the combined company's first annual meeting in the spring of 2014 under one scenario being discussed - though the exact length of his tenure is still unresolved. Mr Parker would serve as chief executive. If a deal is finalised, the combined company would use the American name and have its headquarters in Fort Worth, where AMR is based. Willie Walsh, IAG's chief executive, said in August that the group would consider investing in American if it helped cement the US carrier's place in the Oneworld global airline alliance that British Airways also belongs to. Some analysts expressed concern that American could defect to another alliance - after Delta, part of the SkyTeam global airline partnership, considered bidding for AMR. But the merger discussions between AMR and US Airways have been based on the idea that the combined company would remain in Oneworld. "If it [investing in American] was something American had requested of us [IAG], and was in the interests of our shareholders, it's something we would have considered," said IAG. But it's looking increasingly unlikely. British Airways has been keen to see American remain in Oneworld because the two airlines have a strategically important - and lucrative - joint venture on routes between London and New York. The case for a merger between AMR and US Airways has been highlighted by the improvement in profitability at some other large US carriers that have done deals. Consolidation has enabled the remaining large airlines - United, Delta and Southwest Airlines - to abandon the industry habit of flooding the market with capacity and engaging in vicious price wars. Instead, some have felt able to raise fares.