Corrects combined revenue figure
American Airlines and US Airways have announced plans to merge in an $11 billion deal that will create the largest airline in the world.
The combined carrier will carry more than 170 million passengers and generate revenues of more than $38.7 billion annually, based on 2012 numbers. It will retain the American name, be based in Fort Worth, Texas, and be a member of the Oneworld alliance.
"The combination of American and US Airways brings together two highly complementary networks with access to the best destinations around the globe and gives us a strong platform to provide our customers the most connected, comfortable travel experience available," says Tom Horton, chairman, president and chief executive of American.
"The operational and financial strength of the combined airline is expected to enable continued investment in new products and technologies and will create exciting new opportunities for our people, even as we deliver strong cash flow and sustainable profitability."
Doug Parker, chairman and chief executive of US Airways, says: "Today marks an exciting new chapter for American Airlines and US Airways. The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace."
Parker is to become chief executive and Horton chairman of the new company. Horton will step down and Parker will become chairman after the new carrier's first annual meeting of shareholders.
American creditors will receive a 72% stake and US Airways shareholders a 28% stake in the new company.
The airlines hope to close the deal during the third quarter, however it requires approval of the bankruptcy court, US Airways shareholders, as well as US antitrust regulators.
The combined fleets will have 948 mainline aircraft, ranging from the 99-seat Embraer 190 to the 310-seat Boeing 777-300ER, and 568 regional aircraft, as of the end of 2012. It will have hubs at Charlotte, Chicago O'Hare, Dallas-Fort Worth, Los Angeles, Miami, New York John F Kennedy (JFK), Philadelphia, Phoenix and Washington National.