American Airlines, US Airways to merge
American Airlines and US Airways have reached an $11 billion merger deal that will create the world’s largest airline. The new company will be known as American Airlines and will be headquartered in Dallas-Fort Worth with significant corporate and operational facilities in Phoenix.
The new American Airlines, with firm orders for more than 600 new mainline aircraft, will have one of the most modern fleets in the industry and plans continued investment in technology, products and services.
Thomas Horton, chairman, president and CEO of American Airlines, will serve as chairman of the combined airline’s board of directors through its first annual meeting of shareholders, and will also serve as the combined airline’s representative to the oneworld Alliance, of which he is currently chairman, and International Air Transport Association for the same duration.
Doug Parker, chairman and CEO of US Airways, will serve as CEO and a member of the board of directors. He will become chairman of the board following the conclusion of Horton’s service.
American Airlines has been in bankruptcy for more than a year and the merger will be effected pursuant to a plan of reorganization under Chapter 11.
The combined airline will offer more than 6,700 daily flights to 336 destinations in 56 countries. It is expected to maintain all hubs currently served by American Airlines and US Airways.
“The combination of American and US Airways brings together two highly complementary networks with access to the best destinations around the globe and gives us a strong platform to provide our customers the most connected, comfortable travel experience available,” Horton said.
“The operational and financial strength of the combined airline is expected to enable continued investment in new products and technologies and will create exciting new opportunities for our people, even as we deliver strong cash flow and sustainable profitability.”
The combined airline is planning to take delivery of more than 600 new aircraft, including 517 narrow-body aircraft and 90 wide-body international aircraft.