... Robert W. Mann, an aviation consultant who once worked at American, believes that AMR will try to "run the clock" - avoid announcing a merger decision for as long as possible because rejecting US Airways' overtures could trigger an immediate hostile takeover bid. If the economy and the airline industry grow stronger, a delay gives AMR more time to post better financial results and boost Horton's argument that he's already fixing the company, Mann says.

AMR could use more time to figure out what to do with its American Eagle regional-airline subsidiary, which it has tried unsuccessfully to sell. It could even consider alternatives to a merger such as deeper partnerships with airlines other than US Airways.

"There won't be a rush to judgment because Horton doesn't want one," Mann says. "I think it'll be midyear before anything happens."

The two airlines, as well as AMR's creditors and its bondholders, have focused their efforts in recent weeks on reaching a merger agreement, and a deal could come in the next two weeks, the people said on Friday.

Negotiations are continuing and could still fall apart, but progress has been made toward getting a deal done, the people said. An alternative plan for AMR to exit bankruptcy as an independent company appears a less likely path, they added.