“(Reuters) – American Airlines and US Airways Group said they plan to merge in a deal that will form the world’s biggest air carrier with a combined equity value of $11 billion.
The merger caps a wave of consolidation that has helped put U.S. airlines on more solid financial footing.
The widely expected deal has been more than a year in the making. American, a unit of AMR Corp , filed for Chapter 11 bankruptcy in November 2011, and US Airways began its pursuit of a merger in early 2012.
The new carrier — which would carry the American Airlines name — would be 2 percent larger than current No. 1 United Continental Holdings in traffic, as measured by the number of miles flown by paying passengers worldwide.
The new American will be based in Dallas-Fort Worth and will be headed by US Airways Chief Executive Doug Parker, who has long advocated industry consolidation.
US Airways stockholders will receive one share of common stock of the combined airline for each US Airways share, the companies said in a statement….”Twitter