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

  • Hotels

Premium hotel operator ERDI launches it’s own academy in heart of Melbourne

ERDI, a private collection of premium hotels and hospitality businesses, has announced the launch of ERDI Academy, the next chapter of hospitality education and the legacy of founders Eva and Les Erdi. Starting in the mid-1980s, ERDI offers hospitality education with a commitment to community enrichment from its base at its Mercure Welcome Melbourne on […]

  • Destinations

Tropical North Queensland action-packed events calendar for adventure enthusiasts

Sporting enthusiasts and adventure seekers are gearing up for an action-packed year in Tropical North Queensland, with a lineup of sports events and adrenaline-pumping experiences set to take centre stage in 2024. Leading the charge is the highly-anticipated return of the Crankworx World Tour ‘Paradise Edition’ to Cairns from 22-26 May 2024. The mountain biking […]

  • Aviation
  • Sustainability

Singapore Airlines Group first to receive SAF from Neste as AU/NZ play catchup

Singapore Airlines (SIA) Group has signed an agreement with Neste to purchase 1,000 tonnes of neat Neste MY Sustainable Aviation Fuel TM. The purchase makes SIA and Scoot the first carriers to receive Sustainable Aviation Fuel (SAF) produced at Neste’s refinery in the country, at Singapore Changi Airport. The milestone will also mark the first […]

  • Aviation

Qantas Red Tail sale discounts more than 200,000 fares

Qantas has launched its latest International Red Tail sale, discounting more than 200,000 fares to Los Angeles, New York, Honolulu and other US destinations, plus Vancouver. The discounted seats are available to book either as a cash fare or as a reward seat using points. Thirty routes are on sale, including 10 for under $1,199 […]

  • Health & Wellness

Bannisters by the Sea unveils retreat style package for new mothers

Boutique hotel Bannisters by the Sea has revealed a brand-new package for new mothers – Bannisters Mummymoon – right in time for Mother’s Day. Designed to nurture and rejuvenate new mothers, this luxurious escape prioritises postpartum self-care and wellbeing in a serene coastal setting. Reconnecting and Recharging: The two-night Mummymoon allows mums to reconnect with […]

  • Destinations

APT offers destination incentives to enjoy the Best of Asia

APT Luxury Travel launches has launched its Asia Sale featuring 20 trips, with journeys through Vietnam and Cambodia as highlights, as well as opportunities to explore Japan, South Korea, India and Sri Lanka. It’s ‘Spiritual Cambodia and the Mekong’ land and river cruise tour for example takes guests on an all-inclusive 11-day journey through Vietnam […]

  • Travel Agents

Disney Days returns with Inside Out 2 showing in Sydney, Brisbane, Melbourne and Auckland

Time is running out for agents to register their Expression of Interest to an exclusive screening of the much-anticipated Disney and Pixar film, Inside Out 2, hosted by Disney Destinations Australia/New Zealand team and partner United Airlines. Places are limited and applications must be in by 17 May. In addition to the screening of the […]

  • Cruise

Aranui Cruises slashes prices with No Single Supplement and Half Price offers

French Polynesian cargo cruise line Aranui Cruises is slashing thousands off its 2025 Austral and Marquesas Islands cruises with an autumn sale offering 50 per cent off the second guest in a twin share room and no single supplement for solo travellers. On sale until June 21, 2024, Aranui’s 12-day roundtrip voyage from Papeete to […]

  • Destinations

Raes on Wategos celebrates 30th birthday and guests get the presents

World famous luxury boutique hotel Raes on Wategos, in Byron Bay, has launched its 30th birthday celebrations with a Raes Indulgent Escape package. Available for all stays of two nights or more, from June to August, the curated package offers an invitation to indulge in a shared celebration of Raes 30th birthday, whilst revelling in […]