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February 06, 2013

American, US Airways move closer to a deal

An announcement of a merger between American Airlines and US Airways could come early next week as the two sides move closer to completing the final details of a deal, sources familiar with the deal said.

It appears US Airways chief executive Doug Parker will lead the merged carrier while AMR chief executive Tom Horton will stay on as a non-executive chairman for a specific period of time, a source familiar with the deal said Wednesday.

Creditors and bondholders at AMR have also decided on the equity split, the sources said; however, they cautioned that discussions were still ongoing and items could change.

According to The Wall Street Journal, American creditors would own about 72 percent of the airline and US Airways shareholders about 28 percent, although those figures are still being discussed.

Both American and US Airways declined to comment on the possible merger.

The executive arrangement is similar to what happened in the United Airlines-Continental Airlines merger in 2010. United chief executive Glenn Tilton was named chairman of the new airline while Continental chief executive Jeff Smisek kept the CEO and president title. Tilton stepped down as chairman at the end of 2012.

-Andrea Ahles


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Bill Shields

Once they do end up reaching a deal, then the (http://www.desertfleet-serv.com/services.html) fleet services won't be having as many issues, correct? I'm just trying to get out of Phoenix AZ with as little delays as possible. Anything that helps with that, I will welcome with open arms.


Judging by all of the buzz, a merger seemed a likely conclusion. Kind of sad to see but at least AA will remain and hopefully so too will AAdvantage. This is by far the superior frequent flier program, especially because you don't have to pay to redeem your miles. If Parker knows what's good for him, he will leave this alone. Otherwise, he will have a huge customer revolt on his hands.


Seems a shame to merge American with one of the worst Airlines. I try to avoid US Air as there is always a problem - late connections, overbooked flights and rude employees. While a merger may be a good deal for the American employees, it will probably end up being a disappointment for the customers.


hey ec. what the hell are you talking about.merging American,t airlines with the worst airline which is us air. you need to get your facts correct.american has been labled as the most hated airline in the industry!they are the worst on every aspect when it comes to service on time numbers and service! at least us air keeps making profits. you see plain and simple. when you you put ignorant crooked Texans in charge you have an answer.thank god Horton and the board of in directors will be out with a bonus for their stupidity of course.but they will all pay for what they have stole and did to this airline since mr Crandall left! can,t wait to see their payback!


The best thing for both airlines is to capture each's assets and blend them together for an outcome that exceeds everyone's expectations. For this to happen, both management teams should have a role in ushering in the new era at AA. Tom Horton has the large global network experience and moving AA through bankruptcy quickly and deftly while Parker should get kudos for turning a profit and molding an efficient airline. Labor groups from both airlines need to recognize these positives and quit warring with management teams that are not going to simply vanish because two carriers merge. Success will come with corroboration and execution, not from victor/spoils attitudes. Here's hoping all employees from US and AA understand this and will act maturely and professionally if a merger does occur.

Whitey is DC8

Hey "Whitey" haven't you been fired yet? We know you're a pretend to be mechanic that never works.

Crawl back in your hole, or maybe go turn a wrench.

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