Airlines join forces in $11bn merger

AMR Corp and US Airways Group unveiled an $11bn (€8.25bn) all-stock deal that gives creditors of the bankrupt American Airlines parent control of the combined airline.

US Air’s management team, led by chief executive Doug Parker, will assume operational control of the airline, while AMR creditors will wind up owning 72% of the combined carrier and take five seats on the 12-member board. US Airways will have four seats on the board. The remaining seats will be filled by AMR representatives.

“It has been the most successful airline restructuring in history, and we had been very focused from the outset on creating the most value for our owners,” AMR chief Tom Horton said.