American Airlines and US Airways have agreed to merge in an $11 billion deal to create the world’s biggest airline.
The combined carrier will be called American Airlines but run by US Airways CEO Doug Parker.
The merger would reduce the number of major US airlines to four: the new American, United, Delta and Southwest.
The deal is a coup for smaller US Airways Group Inc, which pushed for a merger as soon as American parent AMR Corp filed for bankruptcy protection in November 2011. AMR interests, including creditors will own 72 per cent of the new company and US Airways shareholders 28 per cent.
(Published 14 February 2013, 16:56 IST)
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