American Airlines Group

American Airlines Group, Inc.
Traded as NASDAQ: AAL
NASDAQ-100 Component
DJTA Component
S&P 500 Component
Industry Aviation
Predecessors AMR Corporation
US Airways Group[1]
Founded December 9, 2013 (2013-12-09)
in Fort Worth, Texas[1]
Headquarters CentrePort, Fort Worth, Texas, United States[1]
Number of locations
350 destinations*
Area served
Key people
Production output
6,700 daily flights[2] (2013)
Services Air transportation
Revenue Decrease US$ 40.990 billion[4] (2015)
Increase US$ 6.204 billion (2015)
Profit Increase US$ 7.610 billion[4] (2015)
Total assets Increase US$ 48.415 billion (2015)
Total equity Increase US$ 5.635 billion (2015)
Number of employees
118,500 (2015)
Divisions American Airlines Cargo
American Eagle
American Airlines Shuttle[1]
Subsidiaries American Airlines, Inc.
Envoy Air Inc.
Piedmont Airlines, Inc.
PSA Airlines, Inc.[1]
Footnotes / references
* Hubs in Charlotte, Chicago, Dallas, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington[5]

American Airlines Group, Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas. It was formed December 9, 2013, in the merger of AMR Corporation, the parent company of American Airlines, and US Airways Group, the parent company of US Airways.[6] The airline groups together form the largest airline in the world, with more than 6,700 daily flights to 336 locations in 56 countries worldwide, about $40 billion in operating revenue, over 100,000 employees, and plans to take delivery of 607 new aircraft, including 517 narrowbody aircraft and 90 widebody international aircraft.[7] The integration of American Airlines and US Airways was completed when the Federal Aviation Administration granted a single operating certificate for both carriers on April 8, 2015.[8]


Merger between AMR Corporation and US Airways Group

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.[7] In March, AMR's CEO Tom Horton said that the company was open to a merger.[9] US Airways (US) told some American Airlines (AA) creditors that merging the two carriers could yield more than $1.5 billion a year in added revenue and cost savings.[10] On April 20, American Airlines' three unions said they supported a proposed merger between the two airlines.[11] 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.[12]

In February 2013, American Airlines and US Airways announced plans to merge, creating, by some measurements, the largest airline in the world. 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%. The combined airline will carry the American Airlines name and branding; the holding company will be renamed American Airlines Group Inc.[13] The US Airways' management team, including CEO Doug Parker, will retain most operational management positions. The headquarters for the new airline will also be consolidated at American's current headquarters in Fort Worth, Texas.[14][15] US Airways will exit Star Alliance upon completion of the merger, and American will retain its Oneworld alliance. Judge Sean Lane approved the merger on March 27, 2013, but declined to approve a proposed $20 million severance package to AA executive Thomas W. Horton.[16] On July 12, US Airways shareholders approved the proposed merger.[17]

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),[18] 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 fight against the lawsuit and defend their merger.[19] In early October 2013, the Attorney General of Texas quit the anti-trust lawsuit.

The Department of Justice reached a settlement of its lawsuit on November 12, 2013. The settlement will require the merged airline to give up landing slots or gates in 7 major airports.[20] Under the deal, the new American is required to sell 104 slots at Ronald Reagan Washington National Airport and 34 slots at LaGuardia Airport. An additional requirement is that American sell two gates at O'Hare International Airport, Los Angeles International Airport, Logan International Airport, Dallas Love Field and Miami International Airport.[21] Some of the slots will be sold to low-cost carriers such as JetBlue and Southwest Airlines.[22]

A private antitrust suit, filed by a group of 40 passengers and travel agents, also sought to block the merger.[23] 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.[24] 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.[25]

Following the Department of Justice approval, the merged company traded on the NASDAQ stock exchange under the symbol AAL.[26][27]

On July 13, 2015, American announced that it planned to discontinue the US Airways brand name on October 17, 2015. On October 16, US Airways flew its final flight, US Airways Flight 1939, which was a flight from Philadelphia-Charlotte-Phoenix-San Francisco-Philadelphia.[28]



The merged airline operates the following hubs:[5]

American Airlines hubs
Airport Area served Type/region Airline before merger Destinations Daily flights
Charlotte Douglas International Airport Charlotte, North Carolina Second-largest hub, primary East Coast hub US Airways 155 740
Dallas/Fort Worth International Airport Dallas/Fort Worth, Texas Largest hub and primary gateway to Mexico and secondary South American hub. American Airlines 172 877
John F. Kennedy International Airport New York City, New York Secondary European/transatlantic gateway American Airlines 50 97
LaGuardia Airport Secondary Northeast focus city US Airways
Los Angeles International Airport Los Angeles, California Primary Asian and Oceanic/transpacific gateway, primary Hawaiian gateway, secondary Western hub American Airlines 64 180
Miami International Airport Miami, Florida Primary gateway to Latin America American Airlines 109 310
O'Hare International Airport Chicago, Illinois Third-largest hub, primary Midwest hub American Airlines 113 522
Philadelphia International Airport Philadelphia, Pennsylvania Fourth-largest hub, primary European/transatlantic gateway US Airways 107 469
Phoenix Sky Harbor International Airport Phoenix, Arizona Fifth-largest hub, secondary Mexican gateway, secondary Hawaiian gateway, primary Western hub US Airways 74 316
Ronald Reagan Washington National Airport Washington, D.C. Primary Northeast hub US Airways 65 292


  1. 1 2 3 4 5 "American Airlines Group Overview". American Airlines, Inc. October 2015. Retrieved December 28, 2015.
  2. 1 2 "World's largest airline formed as American Airlines and US Airways merge". The Sydney Morning Herald. Fairfax Media. December 10, 2013. Retrieved December 10, 2013.
  3. "American Airlines Group Executive Leadership Team". American Airlines, Inc. 2015. Retrieved December 28, 2015.
  4. 1 2 "American Airlines - Investor Relations - Annual Reports".
  5. 1 2 "Hub and State Fact Sheets". American Airlines, Inc. 2014. Retrieved December 28, 2015.
  6. "The new American Airlines". Chicago Tribune. Tribune Publishing. December 8, 2013. Retrieved December 8, 2013.
  7. 1 2 Matt Joyce, Staff Writer (January 26, 2012). "US Airways CEO confirms interest in American Airlines". Charlotte Business Journal. Retrieved March 24, 2012.
  8. Karp, Gregory (April 8, 2015). "American Airlines, US Airways get FAA approval to fly as one carrier". Chicago Tribune. Tribune Publishing. Retrieved April 8, 2015.
  9. "American Airlines open to merger, CEO hints". Charlotte Business Journal. March 19, 2012. Retrieved March 24, 2012.
  10. "WSJ: US Airways Considers Merger With American Airlines". Retrieved May 17, 2012.
  11. "3 unions push American Air toward US Airways merger talks". Chicago Tribune. April 22, 2012. Retrieved April 20, 2012.
  12. "Creditor, 'prospective merger partner' US Airways gives support to American exclusivity extension". July 15, 2012.
  13. Koenig, David (February 19, 2013). "American Airlines' CEO to get $20 million severance". USA Today. Retrieved February 21, 2013.
  14. "American Airlines, US Airways unveil $11 billion merger". Reuters. February 14, 2013. Retrieved February 14, 2013.
  15. "American Airlines and US Airways to Create a Premier Global Carrier—The New American Airlines" (Press release). Fort Worth, TX & Tempe, AZ: AMR & US Airways Group. February 14, 2013. Retrieved February 14, 2013.
  16. "AA-US Airways Merger Approved, Not CEO Severance". WDFW TV. Retrieved March 27, 2013.
  17. Jones, Charisse (July 12, 2013). "US Airways shareholders OK American Airlines merger". USA Today. Retrieved July 15, 2013.
  18. "American Airlines has no Plan B, will take antitrust fight to court". The Dallas Morning News. August 20, 2013. Retrieved February 16, 2014.
  19. Evan Perez (August 13, 2013). "US government seeks to block American-US Airways merger". CNN.
  20. Maxon, Terry (December 11, 2013). "Confirmed: Settlement reached in the American Airlines-US Airways case". Dallas News. Retrieved November 12, 2013.
  21. Had Mouawad; Christopher Drew (November 12, 2013). "Justice Dept. Clears Merger of 2 Airlines". The New York Times.
  22. Isidore, Chris; Perez, Evan (November 12, 2013). "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". CNN Money. Retrieved November 12, 2013.
  23. American-US Merger Still Faces Private Antitrust Lawsuit. Frequent Business Traveler (November 18, 2013). Retrieved December 8, 2013.
  24. Gives Green Light for American Air Exit from Bankruptcy and Merger with US Airways. Frequent Business Traveler (November 27, 2013). Retrieved December 8, 2013.
  25. Supreme Court Declines to Block American, US Air Merger. Frequent Business Traveler (December 8, 2013). Retrieved December 8, 2013.
  26. Ausick, Paul (November 15, 2013). "Merged U.S. Airways, American Airlines Will List with Nasdaq". 24/7 Wall St. via Yahoo! Finance. Retrieved November 15, 2013.
  27. US Airways fact sheet
  28. "As Airline Megamergers Wrap Up, US Airways Flies Into History". Retrieved 2015-10-17.

External links

This article is issued from Wikipedia - version of the 11/12/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.