American Airlines AA and US Airways may reach a merger this week

> American Airlines AA and US Airways may reach a merger this week American Airlines parent company...

American Airlines parent company AMR Corp and US Airways Group Inc. have entered the final stage of merger and are expected to be announced as early as this weekend. The combined company would be larger than United Continental Holdings Inc. and Delta Airlines in terms of revenue and account for a quarter of U.S. domestic traffic.

According to a Reuters holiday report, the two airlines have resolved disputes over valuation and management structures. US Airways Group Inc. President Doug Parker will continue to serve as president, while AMR President Thomas W. Horton will serve as chairman of the board until spring 2014. In terms of the share merger, AMR shareholders will receive 72% ownership of the new company, while US Airways shareholders will receive the remaining 28% ownership.

According to internal sources, the two airline boards will vote on the final proposal in the middle of this week and may announce a formal merger by the end of this week. However, as negotiations are continuing, the possibility of delay or collapse cannot be ruled out. AMR shareholders discussed merger and acquisition plans in New York on Monday (February 11).

American Airlines will implement the agreement made with the AMR union last year. After the merger of the two companies, the headquarters will be moved to Fort Worth, Texas, where AMR is headquartered. US Airways is currently headquartered in Tempe, Arizona.

This deal has been negotiated for 14 months since AMR filed for bankruptcy in November 2011. After Delta merged with Northwest Airlines, United Airlines and Continental Airlines, this marked the last carrier merger in the traditional U.S. airline industry.

(Editor: Wang Hua)