[h=3]By DOUG CAMERON[/h]American Airlines parent AMR Corp. and US Airways Group Inc. Thursday announced that their boards have approved a merger that would create the world's largest airline.
[h=3]American Airlines Reborn[/h]See an animation of airline mergers since the 1980s, a timeline of the developments in this merger, and an interactive map of the hubs for the combined airline.
AMR's creditors would own 72% of the combined airline, and US Airways shareholders the balance. US Airways Chief Executive Doug Parker will run the combined company as chief executive. AMR CEO Tom Horton will serve as nonexecutive board chairman until next year.
The airline will have a combined valuation of about $11 billion. The new board will have 12 directors.
The new entity will retain the American name and brand remain based in its Fort Worth, Texas, home, but the plan represents a victory for Mr. Parker, one of the most vociferous proponents of the need for industry consolidation.
Mr. Parker said in a memo to staff that the combination was premised on expanding revenue rather than "excessive" cost cuts, with all of the existing hubs "expected" to remain.
It will also be in the Oneworld marketing alliance that American already leads, with US Airways expected to leave the Star grouping.
The plan is subject to approval from the judge overseeing AMR's bankruptcy protection since it filed in November 2011, and also requires clearance from antitrust regulators and other agencies.
—Mike Spector and Susan Carey contributed to this article.
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[h=3]American Airlines Reborn[/h]See an animation of airline mergers since the 1980s, a timeline of the developments in this merger, and an interactive map of the hubs for the combined airline.
AMR's creditors would own 72% of the combined airline, and US Airways shareholders the balance. US Airways Chief Executive Doug Parker will run the combined company as chief executive. AMR CEO Tom Horton will serve as nonexecutive board chairman until next year.
The airline will have a combined valuation of about $11 billion. The new board will have 12 directors.
The new entity will retain the American name and brand remain based in its Fort Worth, Texas, home, but the plan represents a victory for Mr. Parker, one of the most vociferous proponents of the need for industry consolidation.
Mr. Parker said in a memo to staff that the combination was premised on expanding revenue rather than "excessive" cost cuts, with all of the existing hubs "expected" to remain.
It will also be in the Oneworld marketing alliance that American already leads, with US Airways expected to leave the Star grouping.
The plan is subject to approval from the judge overseeing AMR's bankruptcy protection since it filed in November 2011, and also requires clearance from antitrust regulators and other agencies.
—Mike Spector and Susan Carey contributed to this article.
• Invalid email address.
• You can't enter more than 20 emails.
• Seperate multiple addresses with Commas.
• Must enter an email address.
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