AMR Corporation and US Airways Group - Charter Flight Group

The History of Merger between AMR Corporation and US Airways Group

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The History of Merger between AMR Corporation and US Airways Group

 

Last February 2013, US Airways and American Airlines declared their plan of merging, which will create the world’s biggest airline. In their deal, which was estimated to close by the 3rd quarter of 2013, 27% of the company will be owned by AMR while the remaining 28% will be owned by US Airways. The merged airline will be carrying the name and branding of American Airlines; the company will change its name into American Airlines Group Inc. The management team of US Airways, which includes its CEO Doug Parker, will continue the operational management posts.

The new airline company will have its headquarters at the current headquarter of American Airlines, in Fort Worth, Texas. Upon the completion of the merger, US Airways will leave Star Alliance, and American Airlines will maintain its Oneworld alliance. And on March 27, 2013, Judge Sean Lane sanctioned the merger; however, dropped the approval of the proposed $20 million severance package to American Airlines Executive Thomas W. Horton. On July 12, 2013, the shareholders of US Airways approved the merger.

The United States Department of Justice alongside with attorneys general from the District of Columbia, Arizona (headquarters of US Airways), Florida, Pennsylvania, Tennessee, Texas (headquarters of American Airlines), and Virginia on August 13, 2013 filed a litigation looking to block the merger, disagreeing that it would result in lesser competition and increased prices. Both US Airways and American Airlines stated that they will fight the litigation and support their merger. On October 2013, the Attorney General of Texas, Gregg Abbott, left the anti-trust litigation.

On November 12, 2013, the Department of Justice has reached a settlement of its litigation. The settlement indicated the merged airline company to surrender landing slots or gates in seven major airports. In the settlement, the new American Airlines is mandated to sell 34 slots at LaGuardia Airport and 104 slots atRonald Reagan Washington National Airport. An added condition was that American Airline sells two gates at Miami International Airport, Logan International Airport, Dallas Love Field, O’Hare International Airport and Los Angeles International Airport. A few of the slots will be sold to economical carriers like Southwest Airlines or the JetBlue.

Another group consisting of 40 passengers and travel agents filed a private antitrust lawsuit, also tried to block the merger. Bankruptcy court judge of America denied directing the two airlines from merging, stating that the group didn’t show that the merger would irreversibly impair them. The lawyer of the complainant appealed and was rejected by the U.S. District Court level and was also declined by the Supreme Court when Justice Ruth Bader Ginsburg turned down a stay request filed by him.

After the approval of the Department of Justice, the merged airline traded in the NASDAQ stock exchange using the symbol AAL.

On July 13, 2015, American Airlines declared that it is planning to terminate theUS Airways brand name on October 17, 2015. US Airways Flight 1939, which was US Airways’ final flight, flew on October 16, 2015, a Philadelphia-Charlotte-Phoenix-San Francisco-Philadelphia flight.

At present, all US Airways’ commercial flights are now operating as American Airlines, and the US Airways brand is now only part of history. Planning to fly to your next destination soon?American Airlines, the world’s biggest airline by fleet size, is a forerunner when it comes to commercial flights.However, if you don’t like the idea of flying with hundreds of passengers, why not opt for aВ chartered private jet flight? May it be for pleasure or business, Charter Flight Group is here to assist you with yourВ chartered private jet flightВ needs. With our luxurious interiors and personalized service, your chartered private jet flightВ will be a first-rate experience when it comes to exclusive travel.