Merger proposals and plans In January 2012,
US Airways Group, the parent company of
US Airways, expressed interest in taking over
AMR Corporation, the parent company of
American Airlines. In March, AMR's CEO
Thomas W. Horton said that the company was open to a merger. US Airways told some American Airlines creditors that merging the two carriers could yield more than $1.5 billion a year in added revenue and cost savings. On April 20, American Airlines' three unions said they supported a proposed merger between the two airlines. With AMR under
Chapter 11 bankruptcy protection, American Airlines had been looking to merge with another airline. Earlier in July, a bankruptcy court filing stated that US Airways was an American Airlines creditor and "prospective merger partner"; on August 31, US Airways CEO Doug Parker announced that American Airlines and US Airways had signed a nondisclosure agreement, in which they would discuss the possibility of a merger. In February 2013, American Airlines and US Airways announced plans to merge, creating the largest airline in the world by some measurements. In the deal, which was expected to close in the third quarter of 2013, stakeholders of AMR would own 72% of the company and US Airways shareholders would own the remaining 28%.
Rothschild & Co served as the investment bank for the transaction. The combination was considered a "merger of equals" between the two airlines, but retaining the more well-established "American" name going forward, and accordingly the holding company was renamed American Airlines Group Inc. The headquarters for the new group was also consolidated at American's headquarters in
Fort Worth, Texas, but the US Airways' management team, including CEO
Doug Parker, retained most operational management positions. A judge approved the merger on March 27, 2013, but denied a proposed $20 million
severance package to AMR chief Thomas W. Horton. On July 12, US Airways shareholders approved the proposed merger. Horton later received a smaller 17 million dollar severance.
Attempts to block the merger On August 13, 2013, the
United States Department of Justice, along with attorneys general from the District of Columbia, Arizona (headquarters of US Airways), Florida, Pennsylvania, Tennessee, Texas (headquarters of American Airlines), and Virginia filed a lawsuit seeking to block the merger, arguing that it would mean less competition and higher prices. American Airlines and US Airways both said that they would oppose the lawsuit and defend their merger. In early October 2013, the Attorney General of Texas rescinded the anti-trust lawsuit. The Department of Justice reached a settlement on November 12, 2013, requiring the merged airline to relinquish
landing slots or gates in 7 major airports. Under the deal, the new American was required to sell 104 slots at
Ronald Reagan Washington National Airport and 34 slots at
LaGuardia Airport. It was also required to sell gates at
O'Hare International Airport,
Los Angeles International Airport,
Logan International Airport,
Dallas Love Field and
Miami International Airport. Some of the slots were expected to be sold to low-cost carriers such as
JetBlue and
Southwest Airlines. A private antitrust suit, filed by a group of 40 passengers and travel agents, also sought to block the merger. American's bankruptcy court judge refused to enjoin the two airlines from merging, saying that the group did not demonstrate that the merger would irreparably harm them. The plaintiffs' lawyer appealed and was turned down at the U.S. District Court level and was further rebuffed at the Supreme Court after Justice Ruth Bader Ginsburg denied a stay request filed by him.
Implementation of merger Following the Department of Justice approval, the merged Group company traded on the
NASDAQ stock exchange under the symbol AAL. In December 2013 a severance package valued at about $17 million was agreed for Tom Horton, the outgoing AMR CEO, who had led American Airlines through bankruptcy and the major merger. US Airways exited
Star Alliance upon completion of the merger, and American retained its membership in
Oneworld. On July 13, 2015, American announced that it planned to discontinue the US Airways brand name by October 17, 2015, and on October 16, 2015, US Airways flew its final flight, US Airways Flight 1939, from Philadelphia to Charlotte to Phoenix to San Francisco to Philadelphia. In March 2021, American Airlines Group said that it will repay the US government debt by issuing a private offering of notes worth about $5 billion, half due in 2026 and half in 2029, and a $2.5 billion term loan credit facility.
Northeast Alliance and antitrust In January 2021, American and
JetBlue launched the
Northeast Alliance, a partnership to coordinate schedules, share revenue, and expand service at
New York–JFK and
Boston–Logan. In September 2023, a federal judge ruled the alliance violated antitrust law and ordered it dissolved. On November 8, 2024, the
United States Court of Appeals for the First Circuit affirmed the ruling, and the
U.S. Supreme Court subsequently declined to hear the case. == Corporate affairs ==