American Airlines (Dallas/Fort Worth) and US Airways (Phoenix) are working towards a February 15 deadline to finalize their merger details. According to this report by Reuters, under the draft proposal,ย Chief Executive Doug Parker of US Airways would become CEO of the new American Airlines, while AMR Corporation’s Tom Horton would serve as a non-executive chairman of the AA board until the spring of 2014, when the combined new company holds its first annual meeting and votes on its management.
The boards of both airlines are expected to vote this week on the merger proposal. AMR’s creditors are due to vote today on the proposal. Depending on these votes a merger could be announced on Thursday or Friday.
US Airways would leave the Star Alliance with any merger. This merger would create the world’s largest airline and would be subject to regulatory government approvals. American Airlines would exit Chapter 11 with any merger.
Even though the merger will be stock merger, in reality, it will be US Airways management taking over American Airlines and retaining the name like America West did with the original US Airways. Since US Airways is still being operated as two airlines (East and West) the new American Airlines will have to get all of its labor agreements together finally with single contracts. A lot of work remains.
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Top Copyright Photo: Bruce Drum. With a merger, the Star Alliance logojets would probably be one of the first US Airways aircraft to be repainted. Airbus A319-112 N703UW (msn 904) arrives at the Charlotte hub of US Airways.
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