American and US Air Announce $11B Merger

14 Feb, 2013

American Airlines and US Airways agreed Thursday to merge in an $11 billion deal that would create the world’s biggest airline.

The combined carrier will be called American Airlines and be based in Fort Worth. It expects to have $40 billion in annual revenue and offer more than 6,700 daily flights to 336 destinations in 56 countries.

Travelers on American and US Airways won’t notice immediate changes. It likely will be months before the frequent-flier programs are combined and years before the two airlines are fully integrated.

The deal is a coup for smaller US Airways Group Inc., and was driven by the persistence of its CEO, Doug Parker, who will run the combined airline. Parker sought a merger almost as soon as American parent AMR Corp. filed for bankruptcy protection in November 2011.

Mentioned In This Post: @AmericanAir @USAirways