2. A merger is a combination of two companies
to form a new company.
Mergers can be defined as a type
of restructuring in that they result in some
entity reorganization with the aim to provide
growth or positive value.
3. Founded- 1930
CEO- Doug Parker
Destinations- 273
Slogan- The new American is arriving.
Headquarters- Fort Worth, Texas, USA
American Airlines is part of the One world airline alliance, and
coordinates fares, services, and scheduling with British
Airways, Finn air, and Iberia in the transatlantic market and
with Japan Airlines and Qantas in the transpacific market.
4. CEO- Robert Isom
Subsidiaries – Piedmont airlines
PSA airlines
Destinations- 193
Headquarters - Tempe, Arizona, USA
Slogan- Fly with us
The airline is an affiliate member of One world. It operates an
extensive international and domestic network, with 193
destinations in 24 countries in North America, South America,
Europe, and the Middle East.
5. In November, 2011 the former parent company of American
Airlines, AMR Corporation, filed for Chapter 11 bankruptcy
protection and in February 2013 announced plans to
merge with US Airways Group, creating the largest airline in the
world.
AMR and US Airways Group completed the merger on December
9, 2013, with the new holding company American Airlines Group,
Inc.
The combined airline will carry the American Airlines name and
branding, and will maintain the existing US Airways hubs in
Charlotte, Philadelphia, Phoenix, and Washington D.C. for a
period of at least five years.
On February 14, 2013, AMR Corporation and US Airways
Group officially announced that the two companies would merge
to form the largest airline (and airline holding company) in the
world.
6. Bankruptcy of American Airlines
Synergies
To eliminate competition
Financial motives
Gaining a competitive advantage or larger
market share
Survival
7. The United States Department of Justice, along with
attorneys general from six states and the District of
Columbia, filed a lawsuit in August 2013 seeking to
block the merger, arguing that it would mean less
competition and higher prices.
Following the Department of Justice approval, US
Airways and AMR announced that the merged
company will trade on the NASDAQ stock exchange
under the symbol AAL
8. The new American has a robust global network
with nearly 6,700 daily flights to more than 330
destinations in more than 50 countries and more
than 100,000 employees worldwide.
The combined airline has the scale, breadth and
capabilities to compete more effectively and
profitably in the global marketplace.
9. Creating more convenient access to the combined
company's global network.
More choices and connectivity, with nine hub
airports across the U.S.
Full integration of policies, websites, kiosks and
customer-facing technology to ensure a consistent
worldwide travel experience
Global access to a stronger one world alliance
creating more options for travel and benefits both
domestically and internationally
10. Employees of the new American will benefit
from being part of a company with a more
competitive and stronger financial foundation,
which will create greater career opportunities
over the long term.
The completed merger also provides the path
to improved compensation and benefits for
employees.
Represented employees will continue to work
under their respective Collective Bargaining
Agreements
11. American Airlines stakeholders and US
Airways shareholders are expected to benefit
from the significant upside potential of the
new combined airline, which is expected to
have approximately $40 billion in revenues
based upon the combination of each
company’s projected 2013 performance.
12. It is to be concluded that this merger is the best outcome
for the company, delivering not only the greatest value for
their financial stakeholders, but also positioning them
well for sustainable success over the long term.
The American Airlines and US Airways merger, Doug
Parker’s goal, became official, with American headed back
to financial markets as a publicly traded company. (It can
be found on NASDAQ under the symbol AAL.)
They are committed to keeping us informed as they
combine into one carrier and will continue to
communicate with us as they reach other important
milestones.