18 FEBRUARY 2013

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Article from BTNews 18 FEBRUARY 2013

American Airlines – US Airways merger

In a move reminiscent of the United Airlines takeover by Continental (the merged airline became United), American Airlines is in effect to become part of US Airways, the combined operation being called American.  In fact US Airways itself is the product of a reverse takeover by America West, that disappeared carrier’s headquarters in Tempe, Arizona likely to be the centre of the new American.

The deal will need approval from competition regulators and a US bankruptcy court before going ahead with American currently trading under US insolvency rules. The US Senate wants to look at it too.  Assuming all that happens, American Airlines will become the world’s largest airline with around 900 aircraft and employing 100,000 people.  It will be owned 72% by the bankruptcy creditors. 

In terms of international operations US Airways is smaller than American and for this reason alone the new operation will probably stay with oneworld.  The IAG/AA joint business looks solid with 53 daily transatlantic departures from Spain and the UK, against the same number for the whole of Europe, according to OAG. www.aa.com

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