AA, US Airways confirm US$11b merger

AA, US Airways confirm US$11b merger
By admin


American Airlines and US Airways have confirmed they will merge to create the world's largest airline with a market value of US$11 billion.

The deal, which is subject to approval from competition regulators and a US bankruptcy court, will see the combined airlines operate 6,700 flights to 336 destinations in 56 countries.

It will take the American Airlines name, be based in Dallas-Fort Worth and be headed by US Airways chief executive Doug Parker.

The regional carriers owned by AA and US Airways – American Eagle and Piedmont and PSA respectively – are expected to be retained.

The airline will essentially be under the control of creditors of the bankrupt AA parent company.

Tom Horton, chairman, president and chief executive of AA, said: "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.

"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."

The networks of the carriers are "highly complementary", he added.

Horton said the merger follows "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," he said.

Doug Parker, who will become chief executive of the combined airline, said the deal will give the carriers greater "scale, breadth and capabilities" to compete in such a competitive aviation landscape.

"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," he said.

American Airlines will remain with Oneworld – US Airways was a Star Alliance member – with an expanded relationship with Qantas likely.

Qantas already has a major partnership with AA on routes from Dallas-Fort Worth.
AA and US Airways said they expect one time transition costs of US$1.2 billion over the next three years while annual savings could grow to more than US$1 billion by 2015.

Latest News

  • Aviation

Low-cost Indian carrier SpiceJet continues to burn cash

It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]

  • Attractions

SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024

AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]

  • Cruise

Silversea taps Barbara Biffi as senior vice president for global sales

Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]

  • Technology
  • Travel Agents

Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy

Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]