American Airlines, US Airways formally announce marriage…on Valentine’s Day
The long discussed love affair between American Airlines and US Airways has been formally announced as a marriage/mega-merger on Valentine’s Day.
Airline industry expert Henry Harteveldt tweeted @hharteveldt, "Doug (US Airways CEO Doug Parker) do you feel like the pretty girl today?"
The two US carriers have sealed the deal and details are taking shape much as experts have predicted.
The mega-airline will be called American and US Airways chairman and CEO Doug Parker will take control as CEO of the new company and member of the Board of Directors. American’s chairman and CEO Thomas Horton will serve as chairman of the combined airlines Board of Directors and continues on as chairman of the oneworld Allliance.
The airlines said they expect to maintain all hubs currently served and that their regional carriers – AMR Corporation’s American Eagle and US Airways’ Piedmont and PSA – will continue to operate as distinct entities.
Longer term, the merged carriers want to expand their presence and further strengthen the network in the Western US, bolster American’s position in Latin America and the Caribbean and enhance connectivity within the oneworld Alliance.
This would include the joint businesses with British Airways and Iberia across the Atlantic and with Japan Airlines and Qantas across the Pacific.
Subject to approval by the US Bankruptcy Court for the Southern District of New York, competition authorities, and US Airways shareholders, the merger expected to be completed in the third quarter of this year.
Industry experts predict that the merger will be good for the airline industry in the US but that the marriage of the two airlines into one mega-carrier will not be good for passengers.
A recent feature on the merger in this month’s The Economist predicted higher fares across all routes and carriers as well as less ticket availability for late bookers.
by Gretchen Kelly and Bev Fearis
Gretchen Kelly
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