We've been waiting and waiting for the final confirmation that -- finally! -- American Airlines and U.S. Airways would complete their merger this week. It seems today is the big day. Bloomberg's Mary Schlangenstein & Beth Jinks report the two companies will approve the merger during their meetings today. One of the big questions was which companies CEO would head the new two-headed flying American beast. Schlangenstien and Jinks confirmed a previous Reuters report about the company's new management structure. U.S. Airways Chief Executive Officer Doug Parker will be CEO while American CEO Tom Horton will be the company's non-executive chairman. Parker was reportedly gunning for both roles, so it seems there has been some compromise there. WFAA's Jason Whitely reports the deal should be announced on Thursday morning.
The deal does face other obstacles before it can be 100 percent official, though. American Airlines has been in bankruptcy since November 2011, so it will have to be approved by the judge overseeing the company's bankruptcy proceedings. The company's unions will also have to vote on the merger. They will also need approval from the Justice Department and the Department of Transportation and the European Union. Those are not expected to hold up the deal in any way. It's harder than you might expect to merge two major airways, you know?
The company will reportedly keep the American Airlines name, and will be based out of American's Fort Worth, Texas headquarters. The new company will be worth an estimated $11 billion and form the biggest airline company in the world. Whether or it will be the best (and some certainly think it is not) remains to be seen.
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