Although expected to have little direct impact on air cargo, the boards of US Airways and AMR, American Airlines’ parent company, gave final approval on Wednesday to a merger of the two airlines, creating the world’s largest airline and reducing the number of remaining major US legacy carriers to three – from six just five years ago.
The new airline will fly 1,500 aircraft and has another 600 on order to replace its aging fleet.
Current AMR Chairman, President and CEO Tom Horton will serve as chairman of the board of the new American Airlines, while US Airways Chairman and CEO Doug Parker will serve as CEO. In the all-stock deal, AMR creditors will receive 72% of the new airline, which the deal values at $11 billion.
The merger is contingent upon approval, which is expected to be uncontroversial, by the bankruptcy court overseeing American’s Chapter 11 reorganization, and by the US Department of Justice’s Antitrust Division.
As part of the integration, we expect US Airways soon to cut its ties to Star Alliance.
