American Airlines set to merge with U.S. Airways
Posted on Thursday, April 18th, 2013 at 7:21 pm
Fort Worth-based American Airlines (AMR) filed a bankruptcy reorganization plan on Monday, April 15.
If the plan for the company’s reorganization is approved by the court, AMR will be afforded 60 days to make a presentation before the creditors, after which a hearing, the outcome of which will be decided on by the same creditors, will determine the mode of reorganization.
Part of the reorganization plan is AMR’s decision to merge with publicly-traded U.S. Airways. Part of the merger filing, of which the Securities and Exchange Commission was given a notification, asked U.S. Airways shareholders to approve of the merger.
A union in 2012 would have earned the companies $24.85 billion in revenues and $1.87 billion in losses, including $2.2 billion in reorganization costs.
AMR CEO Tom Horton will become chairman of the new company and will be succeeded by U.S. Airways chief executive Doug Parker if the merger is approved.