HOME
The Info List - American Airlines Group


--- Advertisement ---



(i)

AMERICAN AIRLINES GROUP, INC. is an American publicly traded airline holding company headquartered in Fort Worth, Texas
Fort Worth, Texas
. It was formed December 9, 2013, in the merger of AMR Corporation , the parent company of American Airlines
American Airlines
, and US Airways Group
US Airways Group
, the parent company of US Airways . The airline groups together form the largest airline in the world , with more than 6,700 daily flights to 336 locations in 56 countries worldwide, about $40 billion in operating revenue, over 100,000 employees, and plans to take delivery of 607 new aircraft, including 517 narrowbody aircraft and 90 widebody international aircraft. The integration of American Airlines
American Airlines
and US Airways was completed when the Federal Aviation
Aviation
Administration granted a single operating certificate for both carriers on April 8, 2015.

CONTENTS

* 1 History

* 1.1 Merger between AMR Corporation and US Airways Group
US Airways Group

* 2 Ownership * 3 References * 4 External links

HISTORY

MERGER BETWEEN AMR CORPORATION AND US AIRWAYS GROUP

In January 2012, US Airways Group, the parent company of US Airways, expressed interest in taking over AMR Corporation, the parent company of American Airlines. In March, AMR's CEO Tom Horton said that the company was open to a merger. US Airways (US) told some American Airlines (AA) creditors that merging the two carriers could yield more than $1.5 billion a year in added revenue and cost savings. On April 20, American Airlines' three unions said they supported a proposed merger between the two airlines. With AMR under Chapter 11 bankruptcy protection , American Airlines
American Airlines
had been looking to merge with another airline. Earlier in July, a bankruptcy court filing stated that US Airways was an American Airlines
American Airlines
creditor and "prospective merger partner"; on August 31, US Airways CEO Doug Parker announced that American Airlines
American Airlines
and US Airways had signed a nondisclosure agreement, in which they would discuss the possibility of a merger.

In February 2013, American Airlines
American Airlines
and US Airways announced plans to merge, creating, by some measurements, the largest airline in the world. In the deal, which was expected to close in the third quarter of 2013, stakeholders of AMR would own 72% of the company and US Airways shareholders would own the remaining 28%. The combined airline carries the American Airlines
American Airlines
name and branding. The holding company was renamed American Airlines
American Airlines
Group Inc. The US Airways' management team, including CEO Doug Parker , retained most operational management positions. In effect, the management of US Airways took over American Airlines, but retaining the American name. The headquarters for the new airline was also consolidated at American's current headquarters in Fort Worth, Texas
Fort Worth, Texas
. US Airways exited Star Alliance upon completion of the merger, and American retained its Oneworld alliance. Judge Sean Lane approved the merger on March 27, 2013, but declined to approve a proposed $20 million severance package to AA executive Thomas W. Horton . On July 12, US Airways shareholders approved the proposed merger.

On August 13, 2013, the United States
United States
Department of Justice along with attorneys general from the District of Columbia, Arizona (headquarters of US Airways), Florida, Pennsylvania, Tennessee, Texas (headquarters of American Airlines), and Virginia filed a lawsuit seeking to block the merger, arguing that it would mean less competition and higher prices. American Airlines
American Airlines
and US Airways both said that they would fight against the lawsuit and defend their merger. In early October 2013, the Attorney General of Texas
Texas
quit the anti-trust lawsuit.

The Department of Justice reached a settlement of its lawsuit on November 12, 2013. The settlement will require the merged airline to give up landing slots or gates in 7 major airports. Under the deal, the new American is required to sell 104 slots at Ronald Reagan Washington National Airport and 34 slots at LaGuardia Airport
LaGuardia Airport
. An additional requirement is that American sell two gates at O\'Hare International
International
Airport , Los Angeles International
International
Airport , Logan International
International
Airport , Dallas Love Field
Dallas Love Field
and Miami International Airport . Some of the slots will be sold to low-cost carriers such as JetBlue
JetBlue
and Southwest Airlines .

A private antitrust suit, filed by a group of 40 passengers and travel agents, also sought to block the merger. American's bankruptcy court judge refused to enjoin the two airlines from merging, saying that the group did not demonstrate that the merger would irreparably harm them. The plaintiffs' lawyer appealed and was turned down at the U.S. District Court level and was further rebuffed at the Supreme Court after Justice Ruth Bader Ginsburg denied a stay request filed by him.

Following the Department of Justice approval, the merged company traded on the NASDAQ
NASDAQ
stock exchange under the symbol AAL.

On July 13, 2015, American announced that it planned to discontinue the US Airways brand name on October 17, 2015. On October 16, US Airways flew its final flight, US Airways Flight 1939 , which was a flight from Philadelphia-Charlotte-Phoenix-San Francisco-Philadelphia.

OWNERSHIP

As of 2017 American Airlines
American Airlines
Group shares are mainly held by institutional investors ( T. Rowe Price
T. Rowe Price
, Berkshire Hathaway
Berkshire Hathaway
, Primecap Management and others )

REFERENCES

* ^ A B C D E " American Airlines
American Airlines
Group Overview". American Airlines, Inc . October 2015. Retrieved December 28, 2015. * ^ A B "World\'s largest airline formed as American Airlines
American Airlines
and US Airways merge". The Sydney Morning Herald . Fairfax Media . December 10, 2013. Retrieved December 10, 2013. * ^ " American Airlines
American Airlines
Group Executive Leadership Team". American Airlines, Inc. 2015. Archived from the original on 2016-03-16. Retrieved December 28, 2015. * ^ A B " American Airlines
American Airlines
- Investor Relations - 2016 Fourth Quarter Results". * ^ "Hub and State Fact Sheets". American Airlines, Inc. 2014. Retrieved December 28, 2015. * ^ "The new American Airlines". Chicago Tribune . Tribune Publishing . December 8, 2013. Retrieved December 8, 2013. * ^ A B Matt Joyce, Staff Writer (January 26, 2012). "US Airways CEO confirms interest in American Airlines". Charlotte Business Journal. Retrieved March 24, 2012. * ^ Karp, Gregory (April 8, 2015). "American Airlines, US Airways get FAA approval to fly as one carrier". Chicago Tribune . Tribune Publishing . Retrieved April 8, 2015. * ^ " American Airlines
American Airlines
open to merger, CEO hints". Charlotte Business Journal. March 19, 2012. Retrieved March 24, 2012. * ^ "WSJ: US Airways Considers Merger With American Airlines". NewsOn6.com. Retrieved May 17, 2012. * ^ "3 unions push American Air toward US Airways merger talks". Chicago Tribune. April 22, 2012. Retrieved April 20, 2012. * ^ "Creditor, \'prospective merger partner\' US Airways gives support to American exclusivity extension". LeveragedLoan.com. July 15, 2012. * ^ Koenig, David (February 19, 2013). "American Airlines\' CEO to get $20 million severance". USA Today. Retrieved February 21, 2013. * ^ Harlan, Chico (25 Sep 2015). "Landing a mega-merger: The last days of US Airways". The Washington Post. Retrieved 2 April 2017. * ^ "American Airlines, US Airways unveil $11 billion merger". Reuters. February 14, 2013. Retrieved February 14, 2013. * ^ " American Airlines
American Airlines
and US Airways to Create a Premier Global Carrier—The New American Airlines" (Press release). Fort Worth, TX & Tempe, AZ: AMR & US Airways Group. February 14, 2013. Retrieved February 14, 2013. * ^ "AA- US Airways Merger Approved, Not CEO Severance". KXAS-TV (NBC DFW). Retrieved March 27, 2013. * ^ Jones, Charisse (July 12, 2013). " US Airways shareholders OK American Airlines
American Airlines
merger". USA Today. Retrieved July 15, 2013. * ^ "