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Blog for updates and happenings in logistics in the Asia-Pacific region

February 19, 2013

AA and US Airways to become world’s biggest in US$11 billion merger

Filed under: General,Newsletter — admin @ 6:15 am

The merger of American Airlines and US Airways at US$11 billion will form the world’s biggest airline holding more than 600 new mainline aircraft on order, following talks that began last August.

The deal will create a new company to be based at Dallas-Fort Worth, headed by AA chairman and CEO Thomas Horton, as chairman to the new airline’s board and representative to the oneworld Alliance.

Mr Horton said the merger, which comes a little over a year since AA filed for bankruptcy, brings together two complementary networks.

“The operational and financial strength of the combined airline is expected to enable continued investment in new products and technologies and will create exciting new opportunities for our people, even as we deliver strong cash flow and sustainable profitability,” he said.

US Airways chairman and CEO Doug Parker will take the position of CEO and board member and will supersede Mr Horton at the end of his service.

The combined airline will boast a workforce of 100,000 and maintain existing hubs of each airline. It will offer more than 6,700 daily flights to 336 destinations in 56 countries.

Of the 600 new aircraft on firm order, 517 will be narrow-body and 90 wide-body aircraft

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