US Airways Merges With American Airlines
Worldwide, Daily news | ankakh | February 14, 2013 22:47
US Airways (LCC) and American Airlines (AAMRQ) have announced they are merging forces to become the world’s largest airline operator.
The new entity will retain the American name; be based in Dallas-Fort Worth, Texas; boast a workforce of nearly 100,000 and have a repertoire of 1,000 jets in its fleet. The deal, which has been in the works for at least a year, values the new airline at $11 billion.
US Airways CEO Doug Parker will run the combined company as chief executive and AMR CEO Tom Horton will become nonexecutive board chairman until 2014.
US Airways CEO Doug Parker said on a conference call with analysts that the combined carrier will service more U.S. cities and will offer 6,700 daily flights to 336 destinations in 56 countries. Existing American and US Airways hubs will remain open and both airlines will continue to operate independently until the deal is completed. Current loyalty programs for each carrier will be maintained and existing miles. Moreover, American customers can still earn AAdvantage miles with participating companies.
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