AMR Corporation-owned American Airlines and US Airways will join forces to become the world's largest airline operating under the American Airlines brand.
In November 2011, AMR Corporation filed for bankruptcy protection in the US (TTG Asia e-Daily, November 30, 2011).
If the planned merger proceeds, the combined carrier will have US$11 billion in equity and a network of 6,700 daily flights spanning 336 destinations in 56 countries. Hubs of both airlines are expected to remain.
According to a release, the airline is expected to provide the most service across the East Coast and Central regions of the US; expand its presence in western US; bolster American Airlines’ leading position in Latin America and the Caribbean; enhance connectivity within the Oneworld alliance; and serve 21 destinations in Europe and the Middle East, among other improvements.
To be headquartered in Dallas-Fort Worth, the company will be led by US Airways CEO, Doug Parker. Thomas Horton, chairman, president and CEO of American Airlines, will serve as chairman for the airline’s board of directors and Oneworld alliance representative until the middle of next year.
Said Parker: “The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace. Our combined network will provide a significantly more attractive to customers, ensuring that we are always able to take them where they want to travel, when they want to go.”
The airline has firm orders for more than 600 new aircraft, including 517 narrow-body and 90 wide-body planes.