CHARLOTTE, N.C. — US Airways has officially sealed an $11 billion deal for American Airlines. The merger creates the world's biggest airline.
The news was announced at 6:30 a.m. Thursday.
The new American Airlines-U.S. Airways merger would mean the country has four major airlines: American, Delta, United and Southwest.
The agreement was no surprise to Charlotte-Douglas International Airport Director Jerry Orr.
"It's the worst-kept secret in aviation," he said. "Time to get on with it."
The new airline will serve more than 187 million passengers a year, have about 100,000 employees and provide more than 6,700 daily flights.
The merger will operate under the American Airlines name and will be run by US Airways CEO Doug Parker, the release says.
It will have eight hubs in all, adding American's hubs (Dallas-Fort Worth, Chicago, Miami, New York and Los Angeles) to U.S. Airways's hubs (Phoenix, Philadelphia, and Charlotte).
U.S. Airways CEO Doug Parker, who will run the newly merged airline, said the company expects to maintain all of them.
Some experts said it's unlikely and eight hubs are too many for one airline.
An expert from the Brookings Institution, Adie Tomer, said Charlotte is most at risk because it's the smallest of the merged airline's hubs.
But local aviation expert Michael Lowrey said Charlotte is safe because of its geography.
Orr thinks so, too. He said the airport is in the perfect location between all the hubs in the Northeast and Florida, where American has a hub in Miami.
He said he's not worried at all.
"We've built this airport to be a hub airport," he said. "It's a terrific platform, very efficient, very effective and very low-cost for the airline."
The deal is expected to close by the end of September, as part of American emerging from bankruptcy protection.
The bankruptcy judge for American's parent company still has to approve. So does the Department of Justice, the Department of Transportation and the European Union because of the international routes involved.
Parker said, “Today marks an exciting new chapter for American Airlines and US Airways. American Airlines is one of the world’s most iconic brands. The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace. Our combined network will provide a significantly more attractive offering to customers, ensuring that we are always able to take them where they want to travel, when they want to go.”
In an email to employees, Parker said the merger will provide the path to improved compensation and benefits for employees.
The combined airline will offer more than 6,700 daily flights to 336 destinations in 56 countries.
The release said the combined airline is expected to maintain all hubs currently served by American Airlines and US Airways, resulting in more travel options for customers.
"Today, we are proud to launch the new American Airlines – a premier global carrier well equipped to compete and win against the best in the world," said Tom Horton, Chairman, President, and Chief Executive Officer of American Airlines. "Together, we will be even better positioned to deliver for all of our stakeholders, including our customers, people, investors, partners, and the many communities we serve."
In the email to employees, Parker said they expect the merger to close third-quarter of 2013.
The Association of Professional Flight Attendants union welcomed Thursday's announcement of the merger.
APFA President Laura Glading said, "It's been a long, tough road but the result is well worth it. Today's announcement proves that everyone benefits when labor has a seat at the table. The new American will provide job security and fair compensation and benefits for all employees. It will also be a great option for the traveling public. I'm looking forward to working with our new colleagues as our companies' operations and cultures combine. Flight attendants are eager to help build a strong and competitive airline and restore American's prominence."
There are nearly 10,000 flight attendants in the union.
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