American Airlines and US Airways on Thursday announced they plan to merge to create the country's largest airline, with a route network stretching from coast to coast, and covering large swaths of Latin America, Europe, Canada, the Caribbean and Africa.
The merger would knit together American's parent company, Fort Worth, Texas-based AMR Corp., and Tempe, Ariz.-based US Airways Group Inc. to form a new company worth about $11 billion. The combined carrier — with more than 6,700 daily flights to 336 destinations in 56 countries — would leapfrog over its competitors in terms of passenger traffic, and would retain the name and logo of American.
Here are answers to common questions about the merger:
Why are airlines always pushing for mergers?
Airlines have a very, very hard time making profits. US Airways endured a couple of round trips to bankruptcy court, and American is still trying to pull out of a bankruptcy filed in 2011.
Web Resources
American/US Airways Merger Site