American, US Airways boards approve deal: report

Agence France-Presse
The deal, which would create the largest US airline company by revenue, requires approval from antitrust regulators as well as a US bankruptcy court

Image courtesy of American Airlines.

NEW YORK, USA – The boards of American Airlines parent AMR Corp. and US Airways separately voted to approve a merger between the companies, The Wall Street Journal reported late Wednesday, February 13.

The deal, which would create the largest US airline company by revenue, requires approval from antitrust regulators as well as a US bankruptcy court. American has been under bankruptcy protection since November 2011.

Under the all-stock deal’s terms, American’s creditors would own 72 percent of the combined airlines and US Airways the remainder, the Journal reported. The deal is set to be formally announced early Thursday.

The merger follows a series of other US airline mergers that analysts say have left the US airline industry better positioned for long-term profitability.

A US Airways spokeswoman declined comment. American officials could not be immediately reached for comment. – Rappler.com

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