American Airlines and US Airways announce $11 billion merger

February 20, 2013 by

Fotolia PlaneAMR Corp.’s American Airlines and U.S. Airways are joining forces in an $11 billion merger to create the world’s largest airline company.   According to the terms of the deal, AMR bankruptcy creditors will own 72% of the new company while U.S. Airways shareholders will own 28%. Doug Parker, CEO of U.S. Airways, will continue to serve as chief of the new airline, while AMR CEO Tom Horton will become the non-executive chairman.  Horton will get a performance payment for successfully guiding AMR through bankruptcy.

Even though the boards of each company have agreed to the merger, additional hurdles are in the way before the deal can be completed.  The merger will need to be approved by the judge presiding over American’s bankruptcy and the Department of Justice.  The new company plans to take on the American Airlines brand name.

On February 14, shares of U.S. Airways fell 4.57% following news of the proposed merger.

Categories: Breaking News

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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