American Airlines and US Airways merge to create world’s biggest airline.
News of this merger finally coming to fruition should mean lower rates and quicker transits over the course of time due to the 6,700 daily flights to 336 destinations in 56 countries these airlines can combine to serve. However right now their plan is to keep each airline running as it is currently, so they will not be immediately integrated.
The merged carrier will be the world’s biggest and will keep the American Airlines name, but it will be run by US Airways CEO Doug Parker. American’s CEO, Tom Horton, will serve as chairman of the new company until mid-2014, these people said. They requested anonymity because the merger negotiations were private.
The deal has been in the works since August, when creditors pushed for merger talks so they could decide which earned them a better return: a merger or Horton’s plan for an independent airline. American has been restructuring under bankruptcy protection since late 2011. AMR creditors and possibly its shareholders will own 72 percent of the stock, and US Airways Group Inc. shareholders will get the rest, three of the people said.
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- American Airlines and US Airways agree to merge, create world’s biggest airline (ctvnews.ca)
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