US Airways and American Airlines are set to merge. The air travel giants have created an $11 billion merger that would create the world's largest airline carrier.
AMR Corp., parent of American Airlines agreed to merge with smaller airlines, US Airways. The boards for both airlines formally accounted that they'll go through with the deal after a unanimous vote. The airline would continue to go by the American Airlines brand. They'll keep Chicago O'Hare International Airport as a hub.
"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 AMR Chief Executive Tom Horton said, according to the Los Angeles Times. Horton will become the executive chairman for the combined board.
Doug Parker, the current chief executive of US Airways will be the CEO of the new giant airline.
US Airways pushed for this merger not long after American Airlines declared bankruptcy in 2011. Horton was at first reluctant to agree to the deal to get out of bankruptcy. If this merger is approved by the bankruptcy court and federal regulators, American Airlines will be able to get out of their bankrupt status.
"As part of this process, after months of exhaustive analysis and a thorough review of all alternatives, we concluded that this merger is the best outcome for our company, delivering not only the greatest value for our financial stakeholders but also positioning us well for sustainable success over the long term," said Horton, according to the LA Times
With the new deal, the new airline will be split as 72 percent will go to AMR's stakeholders and 2 percent going to US Airways shareholders.
The merger is expected to be complete by the third quarter of this year. The process may take several months to complete and could cause a headache for travelers, but when it is complete, the airline will have a lot to offer.
The world's largest airline will have more than 6,700 daily flights to 336 destinations in 56 countries.
"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 travel, when they want to go," Parker said, according to the Chicago Tribune.
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