JOC Staff | Feb 14, 2013 4:05PM EST
Both boards of directors at American Airlines and US Airways have approved a merger agreement that will combine the AMR Corporation carriers into a single unit, collectively worth about $11 billion, based on the price of US Airways stock as of Feb. 13, 2013. The combined airline will operate under the American Airlines name.
Thomas Horton, chairman, president and CEO of American Airlines, will serve as chairman of the combined airline’s board of directors through its first annual meeting of shareholders. Horton will also serve as the combined airline’s representative to the oneworld Alliance, of which he is currently chairman, and International Air Transport Association for the same duration.
Doug Parker, chairman and CEO of US Airways, will serve as CEO and member of the board of directors. He will assume the additional role of chairman of the board following the conclusion of Horton’s service.
The board of directors will initially comprise 12 members, including three American Airlines representatives, four US Airways representatives and five ARM creditor representatives.
Leaders from five major unions — Association of Professional Flight Attendants; Association of Flight Attendants-Communications Workers of America, AFL-CIO; Allied Pilots Association; US Airline Pilots Association; and Transport Workers Union, AFL-CIO — representing more than 60,000 American Airlines and US Airways employees today voiced their “strong support” for the merger.
However, the International Association of Machinists and Aerospace Workers declared renewed contracts for its US Airways must be concluded before the association is willing to support the merger.
“The IAM has been in negotiations with US Airways to amend existing contracts for approximately two years,” said Tom Higginbotham, IAM District 142 president, in a written statement.
“The Machinists Union will not allow US Airways to stall our members’ contract negotiations while it devotes its attention to merging with American Airlines,” added Rich Delaney, IAM District 141 president, in the same release. “The IAM is prepared to support this merger only if it provides real value to employees.”
