American Airlines, U.S. Airways to Merge, According to Company Boards
the merger would create a combined equity value of approximately $11 billion
AMR Corporation, the parent company of American Airlines, and U.S. Airways Group announced that the boards of directors of both companies have unanimously approved a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion.
would keep american airlines name
Operating under the American Airlines name, one of the most recognized brands in the world, the combined airline will have a robust global network and a strong financial foundation. The merger will offer benefits to both airlines' customers, communities, employees, investors, and creditors.
Customers will have access to more choices and increased service across the combined company's larger worldwide network and through an enhancedoneworld Alliance, of which American Airlines is a founding member.
With firm orders for more than 600 new mainline aircraft, the combined airline will have one of the most modern and efficient fleets in the industry, and a solid foundation for continued investment in technology, products, and services.
The combined airline will offer more than 6,700 daily flights to 336 destinations in 56 countries. The combined airline is expected to maintain all hubs currently served by American Airlines and U.S. Airways, resulting in more travel options for customers.
Customers can continue to book travel and track and manage flights and frequent flyer activity and will continue to enjoy all benefits and rewards of the AAdvantage and Dividend Miles frequent flyer programs.
The company will be headquartered in Dallas-Fort Worth, TX and will maintain a significant corporate and operational presence in Phoenix, AZ.