American and US Airways seal the deal
American Airlines and US Airways will merge and create the world’s biggest airline.
The boards of both companies are reported to have finally approved the merger yesterday after months of speculation. A formal announcement is expected later today (Thursday).
According to reports in the US media, the merger will bring American Airlines to an estimated market valuation of $11bn (£7bn).
Just over 70% of the new company will be owned by American Airline’s bankruptcy creditors and the rest by US Airways shareholders.
The merged carrier will keep the American Airlines name but will be run by US Airways CEO Doug Parker.
American’s CEO, Tom Horton, will become chairman of the new company, the reports claimed.
It will be based in Fort Worth, Texas.
The deal has been in the works since August, when creditors forced American to consider a merger rather than remain independent.
American has been restructuring under bankruptcy protection since late 2011.
Before any merger goes ahead, it needs approval from competition regulators and a US bankruptcy court.
If approved, it would be the latest in a series of mergers in the US aviation market, following Delta’s merger with Northwest and Continental’s with United.
by Ian Jarrett and Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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