American Airlines, U.S. Airways Reach $11 Billion Merger Deal - ABC 33/40 - Birmingham News, Weather, Sports

American Airlines, U.S. Airways Reach $11 Billion Merger Deal

Posted: Updated:

Staff and Wire Reports

It appears that a merger between American Airlines and U.S. Airways has been given clearance to take off.

The two carriers announced the deal this morning, putting value of the merger at $11 billion. The combined carrier will eventually be called American Airlines and will rank as the world's biggest airline.

But even though American Airlines and US Airways have announced plans to merge, it will be several months -- if not years -- before passengers see any significant impact.

American's parent company is under bankruptcy protection, and a court will have to approve the deal. US Airways shareholders also need to sign off on it -- as do the Department of Transportation and the Justice Department.

Bloomberg News reported the board of directors for American Airlines and US Airways were working out a tentative agreement on a merger.

The Associated Press reported Monday that the companies were trying to finish a deal before Friday, when a confidentiality agreement covering some AMR bondholders expires. That could result in public disclosure about negotiation details.

AMR has been operating under bankruptcy protection since November 2011.

US Airways has pushed for months for a merger. AMR executives were initially reluctant, but the company's bankruptcy creditors urged AMR to consider a merger that they could compare to an independent American Airlines.

Most Popular

Stories
Videos
loading...
  • Latest StoriesMore>>

  • Social media helps Homewood bakery find missing truck in under an hour

    Social media helps Homewood bakery find missing truck in under an hour

    Sunday, July 27 2014 10:33 PM EDT2014-07-28 02:33:35 GMT
    A Homewood bakery got its missing truck back less than one hour after asking for help on social media. Two people saw the plea for help on social media and spotted it on their way home from a Barons game.More >>
    A Homewood bakery got its missing truck back less than one hour after asking for help on social media. Two people saw the plea for help on social media and spotted it on their way home from a Barons game.More >>
  • Nationwide manhunt for Ozark man accused of kidnapping, sexual assault

    Nationwide manhunt for Ozark man accused of kidnapping, sexual assault

    Sunday, July 27 2014 10:00 PM EDT2014-07-28 02:00:39 GMT
    David PittsDavid Pitts
    A 30 year old woman and 8 year old child are receiving medical treatment after they were kidnapped and sexually assaulted. A nationwide manhunt is now underway for the suspect.More >>
    A 30 year old woman and 8 year old child are receiving medical treatment after they were kidnapped and sexually assaulted. A nationwide manhunt is now underway for the suspect.More >>
  • Attorney "getting conflicting stories about absentee ballots" in contested JeffCo race

    Attorney "getting conflicting stories about absentee ballots" in contested JeffCo race

    Sunday, July 27 2014 7:08 PM EDT2014-07-27 23:08:43 GMT
    Jefferson County Commissioner Sandra Little Brown is expected to address the challenge to the District Two election results Monday. The contest was filed by one of her opponent's supporters. ABC 33/40 spoke with the attorney representing that supporter.More >>
    Jefferson County Commissioner Sandra Little Brown is expected to address the challenge to the District Two election results Monday. The contest was filed by one of her opponent's supporters. ABC 33/40 spoke with the attorney representing that supporter.More >>
  • Woman doused with gasoline and burned by ex-boyfriend

    Woman doused with gasoline and burned by ex-boyfriend

    Sunday, July 27 2014 5:04 PM EDT2014-07-27 21:04:38 GMT
    The Jefferson County Sheriff's department is looking for 48 year old Michael Kennedy. He's wanted on several charges after allegedly setting his ex-girlfriend on fire. Just after 2:30 this morning deputies respond to a report of a house fire in the 4400 block of Nellie Anderson Street. They arrived to find a 49 year old female victim with extensive burns to her head, arms, upper body and legs. She was transported to the hospital and admitted to a burn unit in serious condition. Investigators...More >>
    The Jefferson County Sheriff's department is looking for 48 year old Michael Kennedy. He's wanted on several charges after allegedly setting his ex-girlfriend on fire. Just after 2:30 this morning deputies respond to a report of a house fire in the 4400 block of Nellie Anderson Street. They arrived to find a 49 year old female victim with extensive burns to her head, arms, upper body and legs. She was transported to the hospital and admitted to a burn unit in serious condition. Investigators...More >>
  • A triple shooting leaves one person dead

    A triple shooting leaves one person dead

    Sunday, July 27 2014 11:51 AM EDT2014-07-27 15:51:55 GMT
    One person is dead and two others in juried in an early morning shooting in Ensley. Birmingham Police report incident occurred in the 1600 Block of Avenue I. Around 2:30 a.m. police were called to the location and found the victim lying face down in the street suffering from a gunshot wound to the back. Birmingham Fire and Rescue also responded to the scene and pronounced the victim deceased at the scene. The name of the victim has not yet been released pending notification of relatives. Ther...More >>
    One person is dead and two others in juried in an early morning shooting in Ensley. Birmingham Police report incident occurred in the 1600 Block of Avenue I. Around 2:30 a.m. police were called to the location and found the victim lying face down in the street suffering from a gunshot wound to the back. Birmingham Fire and Rescue also responded to the scene and pronounced the victim deceased at the scene. The name of the victim has not yet been released pending notification of relatives. Ther...More >>
  • Judge Rules Benz Plant Violated Labor Laws

    Judge Rules Benz Plant Violated Labor Laws

    Saturday, July 26 2014 11:29 PM EDT2014-07-27 03:29:07 GMT
    A judge has ruled Mercedes-Benz U.S. International violated labor laws while dealing with employees interested in forming a labor union.An administrative law judge for the National Labor Relations Board ordered MBUSI to revise rules in its employee handbook governing the solicitation and distribution of materials at its auto manufacturing plant in Vance.The United Auto Workers accused Mercedes managers of stymieing pro-union employees' efforts to distribute information about the union.Mercede...More >>
    A judge has ruled Mercedes-Benz U.S. International violated labor laws while dealing with employees interested in forming a labor union.An administrative law judge for the National Labor Relations Board ordered MBUSI to revise rules in its employee handbook governing the solicitation and distribution of materials at its auto manufacturing plant in Vance.The United Auto Workers accused Mercedes managers of stymieing pro-union employees' efforts to distribute information about the union.Mercede...More >>
  • Glen Allen man killed in accident involving logging truck

    Glen Allen man killed in accident involving logging truck

    Saturday, July 26 2014 6:17 PM EDT2014-07-26 22:17:25 GMT
    Alabama State Troopers say a 63 year old man from Glen Allen was killed in a two vehicle crash in Fayette County. It happened Friday night on County Road 73.More >>
    Alabama State Troopers say a 63 year old man from Glen Allen was killed in a two vehicle crash in Fayette County. It happened Friday night on County Road 73.More >>
  • Shooting victim's wife and sons want answers concerning homicide investigation

    Shooting victim's wife and sons want answers concerning homicide investigation

    Saturday, July 26 2014 6:11 PM EDT2014-07-26 22:11:45 GMT
    Family members grieve the loss of a 37-year-old man shot dead. Birmingham police are investigating. A family is asking questions as police hear conflicting stories.More >>
    Family members grieve the loss of a 37-year-old man shot dead. Birmingham police are investigating. A family is asking questions as police hear conflicting stories.
    More >>