American Airlines and US Airways will merge and create the world's biggest airline. The boards of both companies approved the deal late Wednesday, according to four people close to the situation.
The carrier will keep the American Airlines name but will be run by US Airways CEO Doug Parker. American's CEO, Tom Horton, will serve as chairman of the new company until mid-2014, these people said. They requested anonymity because the merger negotiations were private.
The merger caps a turbulent period of bankruptcies and consolidation that will leave the U.S. airline industry dominated by four big carriers â€” American, United, Delta and Southwest. Together they would control almost three-quarters of U.S. airline traffic.
The deal has been in the works since August, when creditors forced American to consider a merger rather than remain independent. American has been restructuring under bankruptcy protection since late 2011. AMR creditors and possibly its shareholders will own 72 per cent of the stock, and US Airways Group Inc. shareholders will get the rest, three of the people said.
A formal announcement is expected Thursday morning.
Read more Business News
- RDCO Diesel Spill UpdateKelowna
- Challenge pro field heats upPenticton / S. Okanagan
- Knox, Dilworth parks reopenKelowna
- Underwear run a big hitPenticton / S. Okanagan
|QHR Technologies Inc||1.20||-0.01|
|Anavex Life Sciences||0.265||+0.005|
|Copper Mountain Mining||2.99||+0.11|
|Sunrise Resources Ltd||0.025||-0.005|
|Mission Ready Services||0.26||+0.045|
There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...
Photo: ContributedI would call it a joy ride... You see a planned project or business has a destination. It may be an ongoing revenue stream, it may be a business value or an exit strategy. If you don...
Establishing a joint account may seem like a great strategy at first glance. However, there are many factors that must be considered before taking this action. This article will explore the use of &ls...