American, US Airways Officially Confirm Merger

February 14, 2013

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

The combined carrier will be called American Airlines and be based in Fort Worth, and US Airways CEO Doug Parker will run it. US Airways had pushed for a merger almost as soon as American parent AMR Corp. filed for bankruptcy protection in November 2011.

AMR Stakeholders will own 72% and US Airways shareholders will own 28% of the combined company’s common stock. The combined airline will offer more than 6,700 daily flights to 336 destinations in 56 countries – including Bermuda.

“The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace,” Mr Parker said. “Our combined network will provide a significantly more attractive offering to customers, ensuring that we are always able to take them where they want to go.”

“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,” said Tom Horton, Chairman, President, and Chief Executive Officer of American Airlines. “Together, we will be even better positioned to deliver for all of our stakeholders, including our customers, people, investors, partners, and the many communities we serve.

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Comments (7)

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  1. Cali Girl says:

    I can only imagine what the price of my next ticket home to Cali will be….

  2. letmypeoplego says:

    I agree

  3. Brad says:

    This is not good for Bermuda. Not good at all.

  4. Y-Gurl says:

    American and USless Airways, one less price option for all of us

  5. Bermyman says:

    They have joined forces to possibly create the worst airline of all time!

  6. yay! says:

    can they bring out a seat sale!

  7. Red says:

    I sure hope that our tourism minister negotiates better ticket pricing to and from Bermuda. Mr. Tourism Minister, please lean on the Great C.V. Jim Woolridge for some sound advise, if you haven’t done so already.

    Your new ideas and concepts combined with C.V.’s vast experience might just be the ticket! Pun intended.