The boards of American airlines and US Airways reportedly met yesterday to rubberstamp a $11 billion merger.
A formal announcement is expected to today bringing American Airlines closer in value to rival Delta Air Lines.
The airline giant will have around 900 aircraft and run more than 3,000 flights, employing 100,000 people, not including affiliates
The carrier will be run under the American Airlines brand, but the chief executive is expected to be the current US Airways boss, Doug Parker.
The creation of the world’s largest airline by passenger carryings has already prompted opposition from the Business Travel Coalition in the US and will face gaining approval from competition regulators.
Btc chairman Kevin Mitchell said: “From a consumer standpoint – individual traveller or corporate travel department – there are few benefits to offset the negative impacts of this proposed merger that include reduced competition, higher fares and fees and diminished service to small and mid-size communities.
“To be clear, there is benefit in a financially viable air transportation system. However, previous mergers have already enabled seat capacity cuts, higher fares and billions of dollars in fees for ancillary services resulting in a financially strengthening industry.
“As such, consumer harms from this merger are indeed exacerbated, as there are no substantial countervailing consumer benefits.”
The majority of the new company will be owned by American Airlines’ bankruptcy creditors, who will have 72% of the company, according to US reports.
The Association of Flight Attendants, which represents nearly 10,000 staff at US Airways, subsidiaries Piedmont and PSA, as well as American Eagle, said that for the merger to be productive, it was “imperative” that it not only work for all flight attendants, but for all employees at both carriers.
“We expect to be full partners in the benefits created by forming the world’s largest airline,” a statement from the union said.
“As we continue to navigate the merger process, we will work with our flying partners at American Airlines to take advantage of emerging opportunities that will reward our hard work and improve the lives of all flight attendants.”
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