On Wednesday, the boards of directors for AMR Corp. and US Airways Group approved a definitive agreement to merge the two carriers, sources close to the deal said. An announcement is scheduled for this morning at American Airlines’ Admirals Club at Dallas/Fort Worth Airport, said the sources, who asked not to be identified according to news sites like Star Telegram and Time.
The merger would create the world’s largest airline, bumping United Continental from the top spot. The new company, which will be based in Fort Worth and called American Airlines, will have combined revenue of $38.7 billion, 1,500 aircraft and close to 100,000 employees.
The bankruptcy judge and federal regulators must approve the deal before AMR, American’s parent company, can exit Chapter 11 bankruptcy protection. AMR’s board met in New York and voted unanimously to approve the deal with a bankruptcy filing expected today regarding the deal.
Details of the merger were not released, but the sources said AMR’s chief executive, Tom Horton, 51, will become non-executive chairman of the new carrier until the first shareholder meeting, which will likely be in mid-2014.
US Airways Chief Executive Doug Parker, 51, looks set become chief executive of the merged airline according to sources quoted by Star-Telegram’s website.