American and US Airways merger likely next week

American 767It’s been a long time in discussion, but it looks like the next big US airline merger will be announced next week between American Airlines and US Airways.

US Airways itself was the subject of a ‘reverse takeover’ recently, when it merged with America West Airlines. More recently, Northwest and Delta merged, and United and Continental merged.

US Airways A320A merger between American and US Airways will likely see the American name and brand retained, with its Dallas/Ft Worth headquarters running the company. However, US Airways’ CEO Doug Parker (formerly CEO of America West) will likely run the new airline, which will be owned by AMR Corp.

The airlines have made no secret about holding discussions and sharing financial information in a bid to pave a way forward to create better revenues and save costs. American Airlines is currently reorganising under Chapter 11 bankruptcy protection; this will likely play an important part in the negotiations.

It remains to be seen what will happen to the various hubs operated around the country by each airline, however Dallas/Ft. Worth will no doubt remain the principal hub.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *