American Airlines, U.S. Airways Reach $11 Billion Merger Deal - KTUL.com - Tulsa, Oklahoma - 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.

  • NewsMore>>

  • High Temps Forecasted For Center of The Universe Festival

    High Temps Forecasted For Center of The Universe Festival

    And it's bound to be a real scorcher for fans once again.Last year, the heat index was over 100. And this year, the crowd can expect much of the same.To keep things cool, the festival is working with paramedics to make sure everyone can escape the heat.Co-Founder, Phil Kaiser says, businesses will also play a big role."Part of the reason for doing it in this urban environment is that you have all of these restaurants and bars and other businesses. They're all air conditioned."More than 110 ba...More >>
    And it's bound to be a real scorcher for fans once again.Last year, the heat index was over 100. And this year, the crowd can expect much of the same.To keep things cool, the festival is working with paramedics to make sure everyone can escape the heat.Co-Founder, Phil Kaiser says, businesses will also play a big role."Part of the reason for doing it in this urban environment is that you have all of these restaurants and bars and other businesses. They're all air conditioned."More than 110 ba...More >>
  • Mayo Demonstration Academy Will Reopen To Ease Overcrowding

    Mayo Demonstration Academy Will Reopen To Ease Overcrowding

    The halls at a vacant Tulsa school will soon, once again, be filled with children.Monday night, the school board approved phase four of Project Schoolhouse.Mayo Demonstration Academy will re-open to help ease overcrowding in east Tulsa.The school will be renovated and expanded using bond money.It will serve students in kindergarten through 8th grades..Amy Polonchek, TPS Chief of Staff says, it's something new for Tulsa."A lot of advantages to keeping students together for that long. You reduc...More >>
    The halls at a vacant Tulsa school will soon, once again, be filled with children.Monday night, the school board approved phase four of Project Schoolhouse.Mayo Demonstration Academy will re-open to help ease overcrowding in east Tulsa.The school will be renovated and expanded using bond money.It will serve students in kindergarten through 8th grades..Amy Polonchek, TPS Chief of Staff says, it's something new for Tulsa."A lot of advantages to keeping students together for that long. You reduc...More >>
  • Search Continues in 1996 Cold Case

    Search Continues in 1996 Cold Case

    Investigators are continuing their search for the remains of a Rogers County woman who hasn’t been seen since 1996.More >>
    Investigators are continuing their search for the remains of a Rogers County woman who hasn’t been seen since 1996.More >>

Most Popular

Stories
Videos
loading...
Powered by WorldNow

P.O. Box 8 Tulsa, OK 74101-0008

Powered by WorldNow

All content © Copyright 2000 - 2014 Worldnow and KTUL. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.