USA. American Airlines parent AMR Corporation and US Airways Group Inc. officially announced their merger on Monday, creating the world’s largest airline.
The new-look American Airlines will have nearly 6,700 daily flights to more than 330 destinations in more than 50 countries and more than 100,000 employees worldwide. The combined airline will have “the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace,” the group said.
As part of the move, US Airways will exit Star Alliance on 30 March 2014 and will immediately enter oneworld on 31 March.
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American and US Airways: A new mega-carrier is born |
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“Our people, our customers and the communities we serve around the world have been anticipating the arrival of the new American,” said Doug Parker, CEO of American Airlines. “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 realised.”
Although American and US Airways have come together as one company, the process to achieve a Single Operating Certificate is expected to take approximately 18 to 24 months. In the meantime, the airlines’ separate websites, as well as the two airlines’ reservations systems and loyalty programmes, will continue to operate separately until further in the integration process.
From January, customers can earn and redeem miles when travelling on either American Airlines or US Airways, will have reciprocal American Admirals Club and US Airways Club benefits, and reciprocal elite recognition. The combined airline expects to share more details around these key customer benefits early next year.
The combination is claimed to deliver enhanced value to American Airlines’ stakeholders and US Airways’ investors. The transaction is expected to generate more than US$1 billion in annual net synergies by 2015.
The common and preferred stock of American Airlines Group will trade on the NASDAQ Global Select Market under the symbols “AAL” and “AALCP,” respectively.
Ronald Reagan International Airport and La Guardia International Airport are among the first airports to feel the effects of the merger. US Airways and American agreed to sell 134 slots at Ronald Reagan International Airport and 34 slots at La Guardia International Airport to gain approval for the merger.
Other airports affected already with a reduction in gate use include Boston Logan, Miami International, Chicago O’Hare, Love Field (Dallas), and Los Angeles International Airport.
