American Airlines Group#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.{{cite news|url=http://www.bizjournals.com/charlotte/news/2012/01/26/us-airways-ceo-confirms-interest-in.html|title=US Airways CEO confirms interest in American Airlines|work=Charlotte Business Journal|author=Matt Joyce|date=January 26, 2012|access-date=March 24, 2012|archive-date=March 27, 2012|archive-url=https://web.archive.org/web/20120327004744/http://www.bizjournals.com/charlotte/news/2012/01/26/us-airways-ceo-confirms-interest-in.html|url-status=live}} In March, AMR's CEO Thomas W. Horton said that the company was open to a merger.{{cite news|url=http://www.bizjournals.com/stlouis/morning_call/2012/03/american-airlines-open-to-merger-ceo.html|title=American Airlines open to merger, CEO hints|work=Charlotte Business Journal|date=March 19, 2012|access-date=March 24, 2012|archive-date=September 15, 2013|archive-url=https://web.archive.org/web/20130915161934/http://www.bizjournals.com/stlouis/morning_call/2012/03/american-airlines-open-to-merger-ceo.html|url-status=live}} 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.{{cite web |url=http://www.newson6.com/story/17330525/wsj-us-airways-considers-merger-with-american-airlines |title=WSJ: US Airways Considers Merger With American Airlines |publisher=NewsOn6.com |access-date=May 17, 2012 |archive-date=May 15, 2012 |archive-url=https://web.archive.org/web/20120515175502/http://www.newson6.com/story/17330525/wsj-us-airways-considers-merger-with-american-airlines |url-status=live }} On April 20, American Airlines' three unions said they supported a proposed merger between the two airlines.{{cite news|url=http://www.chicagotribune.com/business/breaking/chi-3-american-air-unions-would-back-us-airways-merger-20120420,0,5907805.story|title=3 unions push American Air toward US Airways merger talks|work=Chicago Tribune|date=April 22, 2012|access-date=April 20, 2012|archive-url=https://web.archive.org/web/20120421105224/http://www.chicagotribune.com/business/breaking/chi-3-american-air-unions-would-back-us-airways-merger-20120420,0,5907805.story|archive-date=April 21, 2012|url-status=dead}} 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.{{cite web|url=http://www.leveragedloan.com/creditor-prospective-merger-partner-us-airways-gives-support-to-american-exclusivity-extension/|title=Creditor, 'prospective merger partner' US Airways gives support to American exclusivity extension|publisher=LeveragedLoan.com|date=July 15, 2012|access-date=February 14, 2013|archive-date=October 6, 2018|archive-url=https://web.archive.org/web/20181006000229/http://www.leveragedloan.com/creditor-prospective-merger-partner-us-airways-gives-support-to-american-exclusivity-extension/|url-status=live}}

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.{{Cite news|url=https://www.reuters.com/article/uk-americanairlines-merger-idUSLNE91D02020130214|archive-url=https://web.archive.org/web/20170905152108/http://www.reuters.com/article/uk-americanairlines-merger-idUSLNE91D02020130214|url-status=dead|archive-date=September 5, 2017|title=American Airlines, US Airways unveil $11 billion merger|date=2013-02-14|work=Reuters|access-date=2019-05-22|language=en}}{{Cite book|title=Twelve years of turbulence : the inside story of American Airlines' battle for survival|author=Kennedy, Gary (Gary F.)|others=Maxon, Terry, Staubach, Roger|isbn=978-1-68261-488-4|location=New York|oclc=1030744604|date=February 6, 2018}} The combination was considered a "merger of equals" between the two airlines, but retaining the more well-established "American" name going forward,{{cite news|last1=Harlan|first1=Chico|title=Landing a mega-merger: The last days of US Airways|url=https://www.washingtonpost.com/business/the-last-days-of-us-airways/2015/09/25/f5530686-60a6-11e5-8e9e-dce8a2a2a679_story.html|access-date=2 April 2017|newspaper=The Washington Post|date=25 Sep 2015|archive-date=February 20, 2020|archive-url=https://web.archive.org/web/20200220050714/https://www.washingtonpost.com/business/the-last-days-of-us-airways/2015/09/25/f5530686-60a6-11e5-8e9e-dce8a2a2a679_story.html|url-status=live}} and accordingly the holding company was renamed American Airlines Group Inc.{{cite news|url=https://www.usatoday.com/story/todayinthesky/2013/02/19/american-airlines-ceo-in-line-for-20-million-severance/1929953/|title=American Airlines' CEO to get $20 million severance|work=USA Today|date=February 19, 2013|access-date=February 21, 2013|first=David|last=Koenig|archive-date=February 20, 2013|archive-url=https://web.archive.org/web/20130220143144/http://www.usatoday.com/story/todayinthesky/2013/02/19/american-airlines-ceo-in-line-for-20-million-severance/1929953/|url-status=live}} The headquarters for the new group was also consolidated at American's headquarters in Fort Worth, Texas,{{cite news|url=https://www.reuters.com/article/us-americanairlines-merger-idUSBRE91D0MF20130214|title=American Airlines, US Airways unveil $11 billion merger|work=Reuters|date=February 14, 2013|access-date=February 14, 2013|archive-date=December 9, 2015|archive-url=https://web.archive.org/web/20151209022725/http://www.reuters.com/article/us-americanairlines-merger-idUSBRE91D0MF20130214|url-status=live}}{{cite press release |title=American Airlines and US Airways to Create a Premier Global Carrier—The New American Airlines |date=February 14, 2013 |publisher=AMR & US Airways Group |location=Fort Worth, TX & Tempe, AZ |url=http://hub.aa.com/en/nr/pressrelease/american-airlines-us-airways-merger |access-date=February 14, 2013 |archive-url=https://web.archive.org/web/20130216235338/http://hub.aa.com/en/nr/pressrelease/american-airlines-us-airways-merger |archive-date=February 16, 2013 |url-status=dead |df=mdy-all }} 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.{{cite web |title=AA-US Airways Merger Approved, Not CEO Severance |date=March 27, 2013 |url=http://www.nbcdfw.com/news/business/AA-Merger-Focus-of-Bankruptcy-Hearing-200163021.html |publisher=KXAS-TV (NBC DFW) |access-date=March 27, 2013 |archive-date=March 29, 2013 |archive-url=https://web.archive.org/web/20130329165323/http://www.nbcdfw.com/news/business/AA-Merger-Focus-of-Bankruptcy-Hearing-200163021.html |url-status=live }} On July 12, US Airways shareholders approved the proposed merger.{{cite news |last=Jones |first=Charisse |title=US Airways shareholders OK American Airlines merger |url=https://www.usatoday.com/story/travel/flights/2013/07/12/us-airways-shareholders-ok-merger-with-american-airlines/2511675/ |work=USA Today |access-date=July 15, 2013 |date=July 12, 2013 |archive-date=July 14, 2013 |archive-url=https://web.archive.org/web/20130714174657/http://www.usatoday.com/story/travel/flights/2013/07/12/us-airways-shareholders-ok-merger-with-american-airlines/2511675/ |url-status=live }} Horton later received a smaller 17 million dollar severance.{{Cite web|last=Martín|first=Hugo|date=2013-12-12|title=American Airlines CEO to get $17-million severance package|url=https://www.latimes.com/business/la-fi-american-airline-severance-20131212-story.html|url-status=live|access-date=2021-09-29|website=Los Angeles Times|language=en-US|archive-url=https://web.archive.org/web/20151018213359/http://www.latimes.com/business/la-fi-american-airline-severance-20131212-story.html |archive-date=October 18, 2015 }}

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),{{cite news |url=http://www.dallasnews.com/business/airline-industry/20130820-american-airlines-has-no-plan-b-will-take-antitrust-fight-to-court.ece |title=American Airlines has no Plan B, will take the antitrust fight to court |newspaper=The Dallas Morning News |date=August 20, 2013 |access-date=February 16, 2014 |archive-date=July 1, 2014 |archive-url=https://web.archive.org/web/20140701041330/http://www.dallasnews.com/business/airline-industry/20130820-american-airlines-has-no-plan-b-will-take-antitrust-fight-to-court.ece |url-status=live }} 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.{{cite news | url=http://www.cnn.com/2013/08/13/us/airline-merger-antitrust-lawsuit/index.html?hpt=hp_t2 | publisher=CNN | title=US government seeks to block American-US Airways merger | author=Evan Perez | date=August 13, 2013 | access-date=August 13, 2013 | archive-date=June 21, 2017 | archive-url=https://web.archive.org/web/20170621054904/http://www.cnn.com/2013/08/13/us/airline-merger-antitrust-lawsuit/index.html?hpt=hp_t2 | url-status=live }} 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.{{cite news | url=http://aviationblog.dallasnews.com/2013/11/is-a-settlement-announcement-imminent-in-the-american-airlines-us-airways-case.html/ | title=Confirmed: Settlement reached in the American Airlines-US Airways case | work=Dallas News | date=December 11, 2013 | access-date=November 12, 2013 | author=Maxon, Terry | archive-url=https://web.archive.org/web/20131114233827/http://aviationblog.dallasnews.com/2013/11/is-a-settlement-announcement-imminent-in-the-american-airlines-us-airways-case.html/ | archive-date=November 14, 2013 | url-status=dead }} 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.{{cite news | url=https://dealbook.nytimes.com/2013/11/12/u-s-said-to-be-near-settling-american-us-airways-merger-lawsuit/ | work=The New York Times | title=Justice Dept. Clears Merger of 2 Airlines | author=Had Mouawad | author2=Christopher Drew | date=November 12, 2013 | access-date=March 5, 2017 | archive-date=May 19, 2017 | archive-url=https://web.archive.org/web/20170519153907/https://dealbook.nytimes.com/2013/11/12/u-s-said-to-be-near-settling-american-us-airways-merger-lawsuit/ | url-status=live }} Some of the slots were expected to be sold to low-cost carriers such as JetBlue and Southwest Airlines.{{cite news|title=The Justice Department has reached a settlement with American Airlines and US Airways that requires the airlines to sell facilities at seven airports in order to complete their planned merger|url=https://money.cnn.com/2013/11/12/news/companies/us-airways-american-airlines-antitrust/index.html|work=CNN Money|access-date=November 12, 2013|first1=Chris|last1=Isidore|first2=Evan|last2=Perez|date=November 12, 2013|archive-date=November 12, 2013|archive-url=https://web.archive.org/web/20131112181745/http://money.cnn.com/2013/11/12/news/companies/us-airways-american-airlines-antitrust/index.html|url-status=live}}

A private antitrust suit, filed by a group of 40 passengers and travel agents, also sought to block the merger.[http://www.frequentbusinesstraveler.com/2013/11/american-us-merger-still-faces-private-antitrust-lawsuit/ American-US Merger Still Faces Private Antitrust Lawsuit] {{Webarchive|url=https://web.archive.org/web/20131215023847/http://www.frequentbusinesstraveler.com/2013/11/american-us-merger-still-faces-private-antitrust-lawsuit/ |date=December 15, 2013 }}. Frequent Business Traveler (November 18, 2013). Retrieved December 8, 2013. 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.[http://www.frequentbusinesstraveler.com/2013/11/judge-gives-green-light-for-american-air-exit-from-bankruptcy-and-merger-with-us-airways/Judge Gives Green Light for American Air Exit from Bankruptcy and Merger with US Airways] {{Webarchive|url=https://web.archive.org/web/20240426092638/https://www.facebook.com/login/?next=https%3A%2F%2Fwww.facebook.com%2Fplugins%2Flike_box.php%3Fapp_id%3D597997836876878%26channel%3Dhttps%253A%252F%252Fstaticxx.facebook.com%252Fx%252Fconnect%252Fxd_arbiter%252F%253Fversion%253D46%2523cb%253Df2180c9a772bdc5b4%2526domain%253Dwww.frequentbusinesstraveler.com%2526is_canvas%253Dfalse%2526origin%253Dhttps%25253A%25252F%25252Fwww.frequentbusinesstraveler.com%25252Ff0b0bebf12ada45ad%2526relation%253Dparent.parent%26container_width%3D135%26header%3Dfalse%26href%3Dhttps%253A%252F%252Fwww.facebook.com%252FFrequentBusinessTraveler%26locale%3Den_US%26sdk%3Djoey%26show_faces%3Dtrue%26stream%3Dfalse%26width%3D292 |date=April 26, 2024 }}. Frequent Business Traveler (November 27, 2013). Retrieved December 8, 2013. 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.[http://www.frequentbusinesstraveler.com/2013/12/supreme-court-declines-to-block-american-us-air-merger/ Supreme Court Declines to Block American, US Air Merger] {{Webarchive|url=https://web.archive.org/web/20131215023853/http://www.frequentbusinesstraveler.com/2013/12/supreme-court-declines-to-block-american-us-air-merger/ |date=December 15, 2013 }}. Frequent Business Traveler (December 8, 2013). Retrieved December 8, 2013.

Following the Department of Justice approval, the merged Group company traded on the NASDAQ stock exchange under the symbol AAL.{{cite web|last=Ausick|first=Paul|url=https://finance.yahoo.com/news/merged-u-airways-american-airlines-152531870.html|title=Merged U.S. Airways, American Airlines Will List with Nasdaq|publisher=24/7 Wall St. via Yahoo! Finance|date=November 15, 2013|access-date=November 15, 2013|archive-date=November 16, 2013|archive-url=https://web.archive.org/web/20131116234752/http://finance.yahoo.com/news/merged-u-airways-american-airlines-152531870.html|url-status=live}}US Airways fact sheet 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.{{cite web|last=Martin|first=Hugo|url=https://www.latimes.com/business/la-fi-american-airline-severance-20131212-story.html|title=American Airlines CEO to get $17-million severance package|website=Los Angeles Times|date=December 11, 2013|access-date=August 22, 2020|archive-date=October 18, 2015|archive-url=https://web.archive.org/web/20151018213359/http://www.latimes.com/business/la-fi-american-airline-severance-20131212-story.html|url-status=live}}

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.{{Cite news|last = Beewax|first = Marilyn|title = As Airline Megamergers Wrap Up, US Airways Flies Into History|url = https://www.npr.org/sections/thetwo-way/2015/10/16/449157409/as-airline-mega-mergers-wrap-up-us-airways-flies-into-history|newspaper = NPR|date = October 16, 2015|access-date = 2015-10-17|archive-date = September 11, 2018|archive-url = https://web.archive.org/web/20180911152423/https://www.npr.org/sections/thetwo-way/2015/10/16/449157409/as-airline-mega-mergers-wrap-up-us-airways-flies-into-history|url-status = live}}

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.{{Cite news|date=2021-03-08|title=American Airlines unveils $7.5 billion debt sale to repay government loans|language=en|work=Reuters|url=https://www.reuters.com/article/us-american-airline-debt-idUSKBN2B01AR|access-date=2021-03-08|archive-date=March 9, 2021|archive-url=https://web.archive.org/web/20210309025033/https://www.reuters.com/article/us-american-airline-debt-idUSKBN2B01AR|url-status=live}}

American Airlines Group, Inc. is publicly traded under the ticker symbol "AAL" on the Nasdaq Global Select Market, with a market capitalization of about $6.4 billion as of August 2024,{{cite web |title=Annual Report and Accounts 2019 |url=https://www.wsj.com/market-data/quotes/AAL/financials/annual/income-statement |url-status=live |archive-url=https://web.archive.org/web/20200813164924/https://www.wsj.com/market-data/quotes/AAL/financials/annual/income-statement |archive-date=August 13, 2020 |access-date=August 21, 2020 |publisher=WSJ}} and is included in the S&P MidCap 400 index. It was formerly a member of the S&P 500 index until September 23, 2024.

The group operates through its principal wholly owned mainline operating subsidiary, American Airlines.

It also has three subsidiaries, regional carriers Envoy Air Inc., Piedmont Airlines, Inc., and PSA Airlines Inc., that, together with three independent carriers, operate American Eagle under a codeshare and service agreement with American Airlines.

The key trends for American Airlines Group since December 9, 2013, the earliest date that American and US Airways were under common control, are shown below (as at year ending December 31):{{Cite web |title=American Airlines - Financial Results |url=https://americanairlines.gcs-web.com/financial-results/financial-aal |access-date=5 Sep 2024 |website=AA}}

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• [https://www.aa.com/i18n/customer-service/about-us/american-airlines-group.jsp American Airlines Group] at American Airlines website

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{{American Airlines Group}}

{{S&P 400 companies}}

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{{Airline holding companies of the United States}}

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{{DEFAULTSORT:American Airlines-US Airways merger}}

Category:2012 in aviation

Category:2013 in aviation

Category:2012 in economic history

Category:2013 in economic history

Category:2013 establishments in the United States

Category:Airline holding companies of the United States

Category:Holding companies established in 2013

Category:Companies based in Fort Worth, Texas

Category:Companies in the Dow Jones Transportation Average

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Category:American companies established in 2013