American Airlines and US Airways Complete $11 Billion Merger

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Key Takeaways:

  • American Airlines emerged from bankruptcy by officially merging with US Airways, creating the world's largest airline.
  • The merger concluded after 10 turbulent months, including an antitrust lawsuit, and required the airlines to give up slots and gates at several airports for government approval.
  • Full integration of American's and US Airways' fleets and workforces is expected to take about two years, with codesharing and frequent flier program merges beginning in February.
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American Airlines emerged from bankruptcy protection on Monday as it officially merged with US Airways to create the world’s biggest airline.

Concluded after 10 turbulent months that included an antitrust lawsuit brought by the U.S. Justice Department, the merger creates an airline even larger than the industry saw with the coming together of United and Continental.

It will take about two years to fully combine American’s fleet and workforce with those of US Airways. Codesharing will begin in February as the airlines’ frequent flier programs merge.

To win government approval, American and US Airways had to give up slots at Ronald Reagan Washington National Airport and New York La Guardia, as well as gates at several other hubs.

The new American Airlines will have around 1,700 airplanes and well over 10,000 employees.

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