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The much talked about merger in the airline industry between American Airlines and U.S. Airways is all set to happen as both sides came together for discussions in Dallas, last week.

After suffering losses for four consecutive years, AMR, the parent of American Airlines was forced to file for Chapter 11 in 2011, after failing to secure cost-cutting labor agreements and sitting out merger negotiations during the recession.

As a result, Americans' creditors pressured the airline to consider a combination with US Airways as a serious alternative rather than its preferred stand-alone plan.

The Economist reported U.S. Airways' head, Doug Parker, was able to persuade his own staff to support the merger and even got the backing of Wall Street analysts. To top it all, he even got the dissatisfied labour union of American Airlines to support the merger.

In order to make this merger a reality, there are several important points that have to be negotiated between both firms.

Main among them is how their pilots would be treated in the merger; how to create a seniority list; pilot labor costs; work rules and how to split stock in a merger, the Wall Street Journal stated.

But there are a few pilots on both sides opposed to this merger as they fear losing seniority.

Helane Becker of Dahlman Rose, an investment bank, told The Economist that AMR employees' any future pain will be less under a merger with US Airways than if AMR stayed independent.

The merger could also attract more business especially from the eastern United States, where other airlines such as Delta and United hold dominant positions.

The United Airways and American Airlines have had numerous complaints lodged against them in the Department of Transportation by passengers due to frequent flight delays and loss of checked luggage.

A regular airline traveller, Candi Kruse, from Allentown, Pa., told The Washington Post that the merger may further disrupt their performances. Therefore, should this merger happen, Kruce will think about shifting her loyalties.

Kruse said US Airways's service has steadily improved, but she was unimpressed with American's ancient planes and frequent bad flight experiences.

According to the Washington Post, other airline mergers include Delta Air Lines with Northwest Airlines; Southwest Airlines with AirTran and United joining with Continental Airlines.