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| Version 4 | Version 5 |
|---|---|
| American Airlines and US Airways confirm $11bn merger | American Airlines and US Airways confirm $11bn merger |
| (about 5 hours later) | |
| American Airlines and US Airways have announced plans to merge, in a deal that would form the world's biggest airline. | American Airlines and US Airways have announced plans to merge, in a deal that would form the world's biggest airline. |
| The move had been widely touted after the two boards were said to have met on Wednesday. | The move had been widely touted after the two boards were said to have met on Wednesday. |
| The merger will bring American Airlines closer in value to rival Delta Airlines, with an estimated market valuation of $11bn (£7bn). | The merger will bring American Airlines closer in value to rival Delta Airlines, with an estimated market valuation of $11bn (£7bn). |
| This marks the conclusion of talks that started back in August 2012. | This marks the conclusion of talks that started back in August 2012. |
| The lion's share of the new company will be owned by American Airlines' bankruptcy creditors, who will have 72% of the company. | The lion's share of the new company will be owned by American Airlines' bankruptcy creditors, who will have 72% of the company. |
| The carrier will be run under the American Airlines brand, but the chief executive will be the current US Airways boss, Doug Parker. | The carrier will be run under the American Airlines brand, but the chief executive will be the current US Airways boss, Doug Parker. |
| "The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace,'' he said in a statement. | "The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace,'' he said in a statement. |
| "Our combined network will provide a significantly more attractive offering to customers, ensuring that we are always able to take them where they want to go." | "Our combined network will provide a significantly more attractive offering to customers, ensuring that we are always able to take them where they want to go." |
| 'Good news for customers' | 'Good news for customers' |
| The companies said they expected savings of more than $1bn a year. | The companies said they expected savings of more than $1bn a year. |
| Analysts say it should be good news for customers. | Analysts say it should be good news for customers. |
| "Hopefully service will improve," said aviation expert Scott Richardson-Brown. "The route network will open up and hopefully that will be beneficial to customers. | "Hopefully service will improve," said aviation expert Scott Richardson-Brown. "The route network will open up and hopefully that will be beneficial to customers. |
| "There's always that concern about pricing... but historically mergers don't actually lead to ticket prices going up." | "There's always that concern about pricing... but historically mergers don't actually lead to ticket prices going up." |
| But he added: "The reality is that the aviation market in the US has been losing money for years so ticket prices need to rise just because people can't be flown around the world at a loss." | But he added: "The reality is that the aviation market in the US has been losing money for years so ticket prices need to rise just because people can't be flown around the world at a loss." |
| Agreement | Agreement |
| American Airlines' parent company filed for bankruptcy protection more than a year ago. | American Airlines' parent company filed for bankruptcy protection more than a year ago. |
| With a history stretching back 80 years, five years' ago, American had grown to be the world's biggest airline. | With a history stretching back 80 years, five years' ago, American had grown to be the world's biggest airline. |
| It was a pioneer of the loyalty programme for frequent fliers and also brought in the system of sliding prices according to demand. | It was a pioneer of the loyalty programme for frequent fliers and also brought in the system of sliding prices according to demand. |
| But deep losses pushed the company into bankruptcy, with the company blaming labour costs and the unions blaming poor management. | But deep losses pushed the company into bankruptcy, with the company blaming labour costs and the unions blaming poor management. |
| US Airways, by contrast, has been profitable in recent years. | US Airways, by contrast, has been profitable in recent years. |
| Wave of mergers | Wave of mergers |
| Not including affiliates, it will have around 900 aircraft and run more than 3,000 flights, employing 100,000 people. | Not including affiliates, it will have around 900 aircraft and run more than 3,000 flights, employing 100,000 people. |
| The deal will need approval from competition regulators and a US bankruptcy court before going ahead. | The deal will need approval from competition regulators and a US bankruptcy court before going ahead. |
| After that, it could be years before passengers notice any changes. | After that, it could be years before passengers notice any changes. |
| The move follows a period of intense consolidation for the US airline sector, with Delta hooking up with Northwest and Continental with United. |