Shareholders approve of US Airways-American Airlines merger
Shareholders of US Airways announced that they have approved of the merger with American Airlines. The merger which is an all stock deal was valued at US$11 billion is the latest merger in an industry that has undergone substantial consolidation. The new airline will keep the American name and will retain its headquarters in Fort Worth. American's creditors will own 72% of the new airline. American Airlines filed for bankruptcy in November 2011, and the final approval from the bankruptcy court is the last step required for the merger.
Chairman and chief executive of US Airways, W. Douglas Parker said at the annual shareholders' meeting that the combined airline would offer more than 6,700 daily flights to 336 destinations in 56 countries. He said it would offer customers more choices as well as provide cost savings for the airlines.
Previous airline industry mergers were seen with Delta Air Lines and Northwest in 2008, with United and Continental in 2010 and with the Southwest and AirTran merger in 2011.