American Airlines Merger Approved by US Airways Shareholders
The CEO of US Airways announced that the airline’s shareholders have approved the proposed merger with American Airlines’ parent AMR Corp. The approval was one of the final steps remaining in finalizing the deal, which will create the world’s biggest airline upon closing.
Doug Parker announced that an overwhelming majority of the airline’s shareholders approved the merger. Of the roughly 133 million shares voted, over 132 million voted in favor of the proposal, 257,757 voted against, and 256,523 abstained. Other proposals relating to the merger were also approved.
AMR and US Airways announced plans to merge in February. The combined airline, which keep the American Airlines name, will be headquartered in Dallas-Fort Worth, American’s current location. The airline will offer over 6,700 daily flights to 336 destinations in 56 countries. The two airlines will operate a mainline fleet of almost 1,000 aircraft and have 100,000 employees worldwide.
“We are pleased that our shareholders overwhelmingly supported our merger with American Airlines,” said Parker. “This approval is a major milestone on our path to completing the merger… By bringing together two highly complementary networks and generating significant revenue synergies, the new American Airlines will deliver enhanced value for its shareholders.”
The merger is still subject to regulatory approvals and customary closing conditions as well as the confirmation of AMR’s Plan of Reorganization by the U.S. Bankruptcy Court for the Southern District of New York. The two airlines expect to complete the merger in the third quarter
(Photo: Accura Media Group)