American Airlines and US Airways will merge and create the world’s biggest airline. The boards of both companies approved the deal late today, according to four people close to the situation.
The carrier will keep the American Airlines name but will be run by US Airways CEO Doug Parker. American’s CEO, Tom Horton, will serve as chairman of the new company until mid-2014, these people said. They requested anonymity because the merger negotiations were private.
The merger caps a turbulent period of bankruptcies and consolidation that will leave the U.S. airline industry dominated by four big carriers – American, United, Delta and Southwest. Together they would control almost three-quarters of U.S. airline traffic. Read more here.