10 Dec 2013

New giant airline created by US merger

6:07 am on 10 December 2013

American Airlines and US Airways have merged to create the new American Airlines, the world's largest airline.

AMR Corporation, the former parent of American Airlines and US Airways Group announced on Monday it had completed the deal after AMR emerged from bankruptcy protection.

The new American Airlines Group will provide nearly 6700 daily flights to more than 330 destinations in more than 50 countries.

"We are taking the best of both US Airways and American Airlines to create a formidable competitor, ''said chief executive Doug Parker.

"We look forward to integrating our companies quickly and efficiently so the significant benefits of the merger can be realised."

American Airlines began trading on Monday at $US23.95 on the Nasdaq exchange under the symbol AAL. In the first half hour of trade the stock climbed to $US24.40.

The plan to create a third giant carrier to compete with United and Delta cleared a major hurdle in November when the Justice Department announced a settlement to resolve antitrust complaints seeking to block the merger.

Under the agreement, AMR and US Airways agreed to give up slots and other rights at seven airports.