AMR Sealed 11 Billion US Dollars Merger with US Airways
AMR Corporation, parent company of American Airlines as well as US Airways on 14 February 2013 confirmed about their merger plans.
AMR Corporation, parent company of American Airlines as well as US Airways on 14 February 2013 confirmed about their merger plans in a deal which would result in creation of second largest airline of the world in terms of revenue. The merger will take place after Sean Lane; the judge that is overseeing the bankruptcy of AMR will clear the plan. The merger between the two companies will happen just after clearance from US Bankruptcy Court.
The combined company will have an equity value of approximately 11 billion US dollars. The net combined debt of these companies would be somewhere around 15 billion US dollars.
The deal was approved by the board of two companies. The deal came 15 months after the AMR Corporation sought for protection in November 2011. The US Airways chief executive, Doug Parker would be the chief executive of this new company. Tom Horton, AMR’s chief executive on the other hand will be the temporary non-executive chairman.
The two companies announced that they would continue to operate in their present hubs as well as serve everywhere they served as of now. However, US Airways announced that merger would result in cost savings because of combined systems, maintenance facilities and single team for management.