Daily News: February 14, 2013

American Airlines, US Airways Merge in $11 Billion Deal

The New York Times reported that American Airlines has agreed to merge with US Airways, paving the way for the creation of the nation’s largest airline. The new airline will use the American Airlines name.

The Times said the boards of the companies have unanimously approved the deal, valued at $11 billion. A merger would bolster American’s domestic footprint, strengthen its presence in the Northeast and give it a bigger network to attract business travelers and corporate accounts.

Under the terms of the deal, US Airways’ shareholders will own 28% of the combined airline, while 72% of the stake will be held by AMR shareholders, creditors, labor unions and American employees, the Times said.

The merger would create a rival with the size and breadth to compete against United Airlines and Delta Air Lines, which have grown through mergers of their own in recent years and are currently the biggest.

To read the New Times article, click here.

Previously on abfjournal.com:

American Airlines Seeks Court Order to Restructure Financing, Wednesday, October 10, 2012