US Airways-American Airlines merger closer

[marmar]

(Bloomberg) The boards of American Airlines parent AMR Corp. and US Airways Group Inc. are prepared to vote on a merger on Feb. 11 as executives and advisers work on final terms this weekend, people familiar with the matter said.

The sides have agreed that AMR’s bankruptcy creditors would get 72 percent of the equity in the new carrier, with 28 percent for US Airways shareholders, said two of the people, who asked not to be identified because the talks are private. US Airways Chief Executive Officer Doug Parker will run the airline as AMR CEO Tom Horton becomes non-executive chairman, the person said.

Horton’s tenure in that post is still being negotiated, and will be limited to one or two years, one of the people said. AMR’s bankruptcy creditors committee is poised for a vote early next week on any merger accord, with an announcement as soon as Feb. 12, two people said.

Leadership and the division of the equity had been the final major issues in the discussions, people familiar with the talks have said. A tie-up between American, the third-largest U.S. airline, and No. 5 US Airways would create the world’s biggest carrier by passenger traffic. .............(more)

The complete piece is at: http://www.bloomberg.com/news/2013-02-08/amr-us-airways-said-near-merger-deal-as-boards-to-vote.html

[flamingdem]

1. Whaddabout my frequent flyer miles!

Somehow think the flying public is gunna get screwn on this merger.

[marmar]

2. You better know it..... When this one happens......

We'll have 3 legacy carriers: Delta (combination of Delta & Northwest); United (combination of United and Continental); and USAirways/American (comibation of US Airways, American and America West &TWA before that); Southwest and smaller carriers such as Jet Blue, Frontier and Spirit. Watch the fares soar higher than a 777.

[JaneyVee]

3. Is their goal to form the shittiest airline on the planet?

[Jazzgirl]

4. Yes!

At least that's the impression I get.