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American Airlines Takes Flight with Merger Completion

Dec 09, 2013 12:47PM ● Published by Anonymous

By Christina Mlynski

Fort Worth-based American Airlines officially announced its merger completion with U.S. Airways Monday, creating the world’s largest airline.

The merged airline will take the American Airlines name and will have a global network with roughly 6,700 daily flights to more than 330 destinations in more than 50 countries. Additionally, more than 100,000 employees will join the company worldwide, according to an American Airlines statement.

"Our people, our customers and the communities we serve around the world have been anticipating the arrival of the new American," said Doug Parker, CEO of American Airlines. "We are taking the best of both US Airways and American Airlines to create a formidable competitor, better positioned to deliver for all of our stakeholders. We look forward to integrating our companies quickly and efficiently so the significant benefits of the merger can be realized."

American Airlines will now begin the process of combining two airlines. The merger will possess the scale, capabilities and breadth to compete more effectively and produce more profitability in the marketplace.

However, both airlines will maintain separate websites as well as reservation systems and loyalty programs in the short-term.

The process to receive a single operating certificate — allowing the airlines to combine operations — will take 18 to 24 months, the airline explained. In the foreseeable future, it will be “business as usual,” as the airlines continue to operate separately.

Customers will experience the first round of a combined airline in January, when both companies begin to offer some reciprocal frequent-flier benefits. For instance, customers will have the ability to earn and redeem miles when traveling on either airline.

American Airlines will have one of the most modern and efficient fleets in the industry plus a solid foundation for continued investment in technology, products and services with firm order for more than 600 new mainline aircrafts. Additionally, there will be a co-location of ticket counters and gates in key markets.

Employees of the new American Airlines will benefit from being part of a company with a stronger financial foundation and competitive edge — creating greater career opportunities over the long-term. Alignment of benefits, work rules and pay guidelines for employees of both airlines will be phased in over time, so that all changes are carefully considered.

The combination of airlines is expected to deliver enhanced value to American Airlines’ stakeholders and U.S. Airways’ investors. The transaction is expected to generate more than $1 billion in annual net interactions by 2015. 

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