American Airlines and US Airways: Inside the $11 Billion Deal


American Airlines and U.S Airways–unite to become larger, stronger more profitable and for travelers–hopefully better.

What: Fort Worth based American Airlines and Tempe, Arizona based U.S. Airways combine to become the nation’s monster carrier with more than 100 million frequent flyers.

American Airlines–its employees, labor union, creditors and shareholders will own 72% of the company.

U.S. Airways 28%.

The U.S. Airways logo will go away and the two airlines will become one and fly under the new American Airlines logo.

What does it mean for you?  Frequent Flyer miles will stay the same for now but will likely be revamped when the deal is approved.

Click PLAY to watch “American Airlines and US Airways: Inside the $11 Billion Deal.”

Who: Douglas Parker–the current Chairman and CEO of U.S. Airways will become American’s CEO while Tom Horton–the current Chairman and CEO of AMR Corporation–American’s parent–will become chairman of the new American–for about a year.

Why: Because since 2001 American has lost more than $12 billion and ground to United Airlines and Delta Airlines which merged to become–at the time the nation’s largest airline.

The combination of American and U.S. Air will create 6, 700 daily flights to 336 destinations in 56 countries.

The merger will also expand American’s footprint on the east coast making it the market leader.

Where: American will still make Fort Worth, TX home with a staggering 94,000 workers and 950 planes with hubs in Miami, Chicago, Los Angeles, New York, Phoenix, Philadelphia and Charlotte.

When: These things take time. The deal needs approval from government regulators and the bankruptcy court–but it’s expected to be finalized by September.

Until then, travelers will see little change and then–a new American.


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