U.S. Airways Group Inc. and AMR Corp. will merge to become the largest airline in the world at U.S. $ 11 billion. The deal will be announced within a week, after completing a significant difference in the assessment and management structure.
Under terms of the deal are still being finalized, U.S. Airways Chief Executive Doug Parker will be CEO, while AMR Corp Tom Horton became non-executive chairman of the board, the terms will end in 2014, when the merger of the company held its first annual meeting.
The deal could be more than 14 months, after the parent of American Airlines filed for bankruptcy in November 2011 and will mark the last combination of U.S. legacy carriers, Delta and United Continental followed.
“From the incorporation of all the shares of which amounted to U.S. $ 10.5 billion and U.S. $ 11 billion, and will give AMR creditors 72% ownership in the new company and the remaining shareholders of U.S. Airways,” said U.S. Airways CEO Doug Parker as quoted by Reuters on Monday ( 02.11.2013).
Council said the two airlines are expected to meet in the middle of next week to vote on the proposed deal. For announcements, may be reported by the end of the week. The negotiation process is still ongoing and could still be pending.
The company originally tried to schedule a board meeting on Monday next, the AMR creditors committee meeting planning meeting, and said the deal would be announced on Tuesday the merger tomorrow.
However, the AMR Corp. still needs more time to finalize the details and the details of these two airlines. For completion expected until Wednesday.
AMR Creditors Committee will meet in New York, as a first step, and will continue the discussion of the combined airline.
The combination with U.S. Airways would create the world’s top airlines, with passenger traffic and help both carriers to better compete with its rivals, namely, United Continental Holdings Inc. and Delta Air Lines.
Dana merger of the two airlines are smaller funds amounting to U.S. $ 11 billion, when compared to rival Delta reached U.S. $ 12.4 billion, and United Continental reached U.S. $ 8.7 billion.
Capital is currently planned for the split ratio between creditors and U.S. Airways as AMR shareholders implies, for the valuation of approximately $ 3 billion to U.S. Airways and the remaining approximately U.S. $ 7.5 billion to U.S. $ 8 billion for the AMR Corp..