American Airlines and US Airways have signed a ‘pilot’s agreement’ which could potentially smooth the path of any merger between the two airlines.

The two United Stated-based carriers confirmed they had completed discussions with the Allied Pilots Association and the US Airlines Pilots Association, with a deal now in place in the event of a merger.

The deal looks at the terms of employment for pilots as well as the process for pilot integration following a merger.

The memorandum of understanding was created by all parties and will “assist all of the stakeholders, including the Boards of AMR and US Airways, in making an informed decision as to whether a merger should ultimately be pursued”, explained a statement from the carriers.

The statement added the MOU was only one of several elements to be considered before a decision would be made on the mega-merger.

American Airlines is presently in Chapter 11 bankruptcy protection as it seeks to reorganise its operations and return to profitability.