American Airlines and US Airways said Thursday they planned to merge in a deal worth $11 billion, creating the largest carrier in the United States and bringing an end for now to the wave of consolidation in the airline industry.
The new carrier will operate under the American Airlines name and will be based in Fort Worth, Texas, employing about 94,000 people.
"Operating under the American Airlines name, one of the most recognized brands in the world, the combined airline will have a robust global network and a strong financial foundation," the airlines said in a statement.
The carrier will have 950 planes, offer 6,500 flights daily, operate nine hubs, carry 187 million passengers annually and generate revenues of nearly $39 billion.
"The merger will offer benefits to both airlines' customers, communities, employees, investors and creditors. Customers will have access to more choices and increased service across the combined company's larger worldwide network and through an enhanced oneworld® Alliance, of which American Airlines is a founding member," the airlines said.
The merger, which has been approved by the boards of both companies, requires regulatory and bankruptcy court approval.
"Thomas Horton, Chairman, President and Chief Executive Officer of American Airlines, will serve as Chairman of the combined airline's Board of Directors through its first annual meeting of shareholders, and will also serve as the combined airline's representative to the oneworld Alliance, of which he is currently chairman, and International Air Transport Association for the same duration. Doug Parker, Chairman and CEO of US Airways, will serve as Chief Executive Officer and a member of the Board of Directors," the airlines said. EFE