U.S. Airways, American Airlines Merge
U.S. Airways and American Airlines officially announced Thursday that the two companies will merge, creating the world's largest airline.
“Today, we are proud to launch the new American Airlines – a premier global carrier well equipped to compete and win against the best in the world,” Tom Horton, Chairman, President, and Chief Executive Officer of American Airlines said in a statement.
The merger must be approved by the courts because American Airlines' parent company, AMR Corp., is still under bankruptcy protection.
The shareholders will also have to vote to approve the deal. The two airlines only overlap in their routes 13 times so the merge should avoid antitrust allegations.
The joint airline will likely take the more globally-recognized name American Airlines and will be a member of the OneWorld Alliance. U.S. Airways will be leaving the Star Alliance which current members include United Airlines and Air Canada.
"American Airlines is one of the world’s most iconic brands," Horton said. "Today marks an exciting new chapter for American Airlines and US Airways.
The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace."
People with tickets or frequent flier miles with either airline shouldn't worry because it will likely be several months before customers see any changes.
