US Airways And AMR Ready To Merge

Two airlines in the United States (U.S.) merger soon in the near future. They are U.S. Airways Group Inc. and AMR Corp., which will join the airline company with assets of nearly U.S. $ 11 billion. Thus, the new airline would later become the world's largest airline.

A source familiar with the transaction told the business, there was an agreement between the two parties to the merger. The plan, the management of the two companies will announce the result of a deal in the next week. Currently both parties stay resolve several matters relating to the management structure and the distribution of the stock portion.

The goal, company officials each airline will meet in mid-week, to discuss the proposed settlement of the issue. Initially, the management has scheduled a meeting on Monday, along with AMR creditors committee meetings, so that after a decision is made, management will announce the decision on Tuesday.

However, AMR management rejected the plan and ask for a board meeting held on Wednesday (13/2) future. The reason, they need more time to determine the directors chair.

Now, with the request, the faster it will happen the company's board meeting on Wednesday. Furthermore, the board will announce a merger agreement this weekend or Friday and Saturday. "But remember, negotiations are still underway, and it could be delayed again or even messy at all," explained the source.

A lawyer who became members of the committee AMR creditors refused to give an explanation. Representatives AMR and U.S. Airways also declined to confirm this regard.

Previously, Tom Horton, AMR Executive Director, reject these business transactions. He states prefer to file for bankruptcy to the court. However, after discussions with lenders, Horton relented and agreed to consider all options, including a merger with another airline.

Directors chair

However, based on seat distribution management agreements are still under discussion, there is already a preliminary description portion of the division directors. Doug Parker, U.S. Airways Executive Director shall be the Chief Executive Officer (CEO) of the company resulting from the merger. While Horton, has served as a non-executive leadership.

That position will be valid until the spring of 2014. "Furthermore, there will be a first in the company's annual meeting that will determine the next term," he explained.

Just so you know, the proposed merger has been going on for a long time, about 14 months ago. Merging the two companies that began when American Airlines, one of the subsidiary of AMR, filed for bankruptcy in November 2011.

Well, if the merger is implemented, will be the recent merger between the airlines in the U.S. veteran. Previously, the merger had occurred on Delta-Northwest and United-Continental.

It is estimated, the value of the combined assets of AMR and U.S. Airways between U.S. $ 10.5 billion to U.S. $ 11 billion. AMR Creditors will have a 72% share, while U.S. Airways rest.

With these assets, the merged airline will be a strong competitor for the two companies in the U.S. air transportation. Currently, United Continental Holdings Inc. and Delta Air Lines is a major player in the industry. Delta has assets of U.S. $ 12.4 billion, and United Continental
U.S. $ 8.7 billion.

This merger will also make the new airline routes'll have a lot of international travel. They will also have a strong aviation services in the eastern U.S. to the west coast and the North Atlantic route.

In 2012, the number of AMR and U.S. Airways revenues reached U.S. $ 38.69 billion. That figure is higher than United Continental revenue reached U.S. $ 37.15 billion in the same period.