American Airlines and US Airways: Service to More Global Destinations. (PRNewsFoto/American Airlines)
FORT WORTH, Texas and TEMPE, Ariz., Feb. 14, 2013- Thursday, US Airways and American Airlines announced the boards of directors of both companies had 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 based on the price of US Airways' stock as of February 13, 2013.
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 US Airways, resulting in more travel options for customers. Both airlines expect that the regional carriers they own – AMR Corporation's American Eagle and US Airways' Piedmont and PSA – will continue to operate as distinct entities, providing seamless service to the combined airline. The company will be headquartered in Dallas-Fort Worth and will maintain a significant corporate and operational presence in Phoenix.
"Today, we are proud to launch the new American Airlines – a premier global carrier well equipped to compete and win against the best in the world," said Tom Horton, Chairman, President, and Chief Executive Officer of American Airlines. "Together, we will be even better positioned to deliver for all of our stakeholders, including our customers, people, investors, partners, and the many communities we serve.
The combined airline is expected to:
Provide the most service across the East Coast and Central regions of the U.S., including the East Coast shuttle, enhancing the combined carrier's competitive position
Expand its presence and further strengthen the network in the Western U.S.
Bolster American's industry-leading position in Latin America and the Caribbean
Enhance connectivity within the oneworld Alliance – including joint businesses with British Airways and Iberia across the Atlantic and with Japan Airlines and Qantas across the Pacific – creating more options for travel and benefits both domestically and internationally
Serve 21 destinations in Europe and the Middle East
Maintain current hubs of both American Airlines and US Airways, resulting in more choices for customers
Improve traffic flows through the existing hubs of both carriers
Expand service from those hubs to offer increased service to existing markets and service to new cities
Provide an industry-leading travel experience through innovative initiatives intended to increase comfort and connectivity for all customers
Improve valuable loyalty program benefits through expanded opportunities to earn and redeem miles across the combined network
Customers can continue to book travel and track and manage flights and frequent flyer activity through AA.com or USAirways.com, and will continue to enjoy all benefits and rewards of the AAdvantage and Dividend Miles frequent flyer programs. At this time, there are no changes to the frequent flyer programs of either airline as a result of the merger agreement. All miles in both programs will continue to be honored.
The merger is conditioned on the approval by the U.S. Bankruptcy Court for the Southern District of New York, regulatory approvals, approval by US Airways shareholders, other customary closing conditions, and confirmation and consummation of the Plan. The combination is expected to be completed in the third quarter of 2013.
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