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American Airlines to unite with US Airways
The American Airlines and US Airways merger is expected to be completed in the third quarter of 2013, said Thomas W Horton, Chairman, President, and chief executive officer of the AMR Corporation, the parent company of American Airlines. Horton made his remarks in an email to AAdvantage members yesterday.
The two carriers have agreed to merge in an $11 billion deal that would create the world’s biggest airline. The combined carrier will be called American Airlines but be run by US Airways CEO Doug Parker. The boards of the two airlines unanimously approved the deal late Wednesday, and the companies announced the agreement Thursday. The merger would reduce the number of major US airlines to four: the new American, United, Delta and Southwest.
The merger comes after the AMR Corporation filed for bankruptcy protection more than a year ago. Horton assured that both airlines will create a “premier global carrier with an expanded worldwide network, a strong financial foundation, a modern and efficient fleet.” The majority shareholder of the company will be American Airlines’ bankruptcy creditors who, according to a BBC report, will own 72 per cent of the company.
Customers stand to benefit as all the hubs served by both airlines would be maintained. This means that “more than 6,700 daily flights to 336 destinations in 56 countries” would be offered to customers. He assured that the merger will strategically position the merged airline, as a leading global airline. “When the new American arrives, we will provide more options than any other airline across the East Coast and Central US regions, and expand and further strengthen our network on the West Coast.
“The combined airline will add to our reach across the Atlantic and Pacific and bolster American’s industry-leading position in Latin America and the Caribbean.” Meanwhile, Suzanne Rubin, President, AAdvantage loyalty programme assured customers that AAdvantage miles are “secure and existing miles will continue to be honoured.” She added: “In addition, you will continue to earn mile through existing AAdvantage participating companies and you will be able to redeem those miles for the same great rewards.”
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