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US Airways and American Airlines Merge to Form World's Biggest Airline

In a huge merger that could have serious ramifications on the way that Americans fly the friendly skies, American Airlines and US Airways have agreed to come together and create the world’s biggest airline.

According to Fox News, the $11 billion deal was agreed to late on Wednesday and was announced early Thursday. The new merger will reduce the number of major U.S. airlines to only four: United, Delta, Southwest and the new version of American.

US Airways CEO Doug Parker will run the new airline, but it will keep the name of American Airlines. With Parker in control of the company, the CEO of the “old” American Airlines, Tom Horton, will serve as chairman for the new company until its first shareholder meeting, likely in mid-2014.

The merger between the companies is expected to save them more than $1 billion a year. American Airlines has been trying to exit from bankruptcy protection, and this deal is a big part of that plan. Negotiations for this merger have been ongoing since August of 2012.

The new American Airlines would have more than 900 planes, about 3,200 daily flights and about 95,000 employees, making it slightly bigger than United Airlines in terms of passenger traffic. Those numbers do not include regional affiliate airlines.

So what does this mean for you?  Not too much for now.

If you have a ticket on US Airways or American Airlines, that ticket will still be valid on the airline you planned to fly on. The day and time you planned to fly also will not change. When you get to the airport, head to the same airline check-in counter by which your ticket was issued.

If something with your flight is changed because of the merger, you will be contacted by the airline ahead of time, typically to the email address you provided when the ticket was purchased.

Source: Fox News


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