American Airlines and US Airways merge

 

 

A match made in heaven

 

What happens when you combine a near-bankrupt major airline and a mid-size carrier struggling to keep up with the demands of today’s ultra-competitive air industry? You get the largest airline in terms of passengers carried. Only in America!

 

As we informed on November 2011, AMR Corporation parent company of American Airlines (“AA”) filed for Chapter 11 bankruptcy reorganisation.  AA continued operations in spite of the legal manoeuvre.

 

Today, the boards of AMR Corporation and US Airways announced the joint approval for a merger; the new carrier will operate under the American denomination (and branding) run by US Airways’ CEO with AMR CEO’s as chairman.

 

The combined airline will retain the American Airlines name.
The combined airline will retain the American Airlines name.

 

This move however is not definitive, as Husna Haq has explained for BBC:

 

The new airline stills need federal approval to ensure the partnership doesn’t drastically reduce competition, but other airline mergers, such as the 2010 Continental-United merger, sailed through government scrutiny, and analysts expect similar safe passage here: Husna Haq.

 

Delta Airlines (a Sky Team founding member) is currently the world’s largest airline in terms of fleet size and scheduled passenger traffic, however today’s announcement could mean Delta Airlines might be kicked to the second place in the next few months as the new American would have a fleet of more than 900 planes, 3,200 daily flights and about 95,000 employees [1] (tough break Delta!).

 

February 14th, 2013.

TRC

One comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s