American Airlines Merges with US Airways, Forms Largest Airline in the World
American Airlines, the number three player in the U.S. aviation market, merged Monday morning with number five US Airways. The combined company, which will operate under the American Airlines Group name, will have more than 6,700 daily flights to 336 destinations in 56 countries. It will employ over 24,500 flight attendants and 12.500 pilots.
Early Monday morning, representatives from the two airlines met in the Dallas offices of Weil, Gotshal & Manges, and signed the documents merging the two companies creating the world’s largest airline.
Doug Parker, the incoming CEO of the new American, joined by employees of the airline, remotely rang the opening bell for the Nasdaq stock market opening bell from Dallas/Fort Worth International Airport in celebration of the merger and the listing of the combined airline’s common stock on the Nasdaq.
“Our people, our customers and the communities we serve around the world have been anticipating the arrival of the new American,” said Parker. “We are taking the best of both US Airways and American Airlines to create a formidable competitor, better positioned to deliver for all of our stakeholders. We look forward to integrating our companies quickly and efficiently so the significant benefits of the merger can be realized.”
The merger was first announced in February of this year. American had filed for bankruptcy protection in November 2011.
Together, revenue for the two airlines in 2012 was $38 billion and they flew 190 million passengers that year. The merger is expected to save over $1 billion per year by 2015.
Last month, the Department of Justice settled its antitrust lawsuit with the two airlines that had sought to block the merger. A private antitrust lawsuit also seeking to block the merger was thwarted by the Supreme Court over the weekend.
(Photo: Accura Media Group)