American, U.S. Airways Merger Would Create World's Largest Carrier

Posted by George Prentice on Sun, Feb 10, 2013 at 10:01 AM

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The global travel industry is preparing for yet another major merger—this time involving U.S. Airways and American Airlines—in the wake of other mergers of legacy carriers: Delta-Northwest and United-Continental.

Fourteen months after the parent of American Airlines filed for bankruptcy, the company is expect to announce an $11 billion merger with U.S. Airways that would create the world's largest airline. The pending deal is expected to give American Airlines' creditors 72 percent of the ownersip in the new company. The boards of each airline are expected to meet this coming week to consider the deal.

The combined airline is expected to operate under the American Airlines brand and would be based in Fort Worth, Texas, droppng U.S. Airways' headquarters in Tempe, Ariz. The deal would also see U.S. Airways joining American's One World Global airline alliance, which also includes British Airways.

U.S. Airways links the Boise Airport to Phoenix, Ariz. on daily departures and landings.

American Airlines discontinued its daily service between Boise and Los Angeles, via American Eagle, in February 2012.

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