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American Airlines and US Airways approve merger: just the facts, please
"All we want are the facts, ma'am!" - Sgt. Joe Friday
This thread is for factual reporting of official announcements, changes and other issues related to the AA - US merger / reverse takeover. Please contain discussion and speculation about changes, etc. to the AA - US Merger Announcement Discussion thread or the AA - US frequent flyer program speculation thread. This thread will be moderated strictly. The respective Boards of Directors of AA/AMRQ and US/LCC met 13 Feb 2013, with approval of AMR's creditors, announced the merger (reverse takeover) of AA and US on Thursday, 14 Feb 2013. New, combined airline, per AA and US releases, expected to close December 9, 2013: This should be updated as necessary American Airlines Codes: IATA: AA / ICAO: AAL Call sign: your guess - CACTUS? It's a thorny issue... ;) Parent: LCC, based Ft. Worth, TX CEO: Doug Parker; Chairman: Tom Horton (through first shareholder meeting, whereupon Doug Parker becomes Chairman; rep. to oneworld) Governance: Board of 12 Directors, Mr. Parker and 3 US representatives, Mr. Horton and 2 American Airlines representatives, and five AMR creditor representatives. Hubs: CLT, DCA, DFW, JFK, LAX, MIA, ORD, PHL, PHX . . (6,700 daily flights to 336 destinations in 56 countries, maintaining all the hubs currently served by both airlines) Alliance: oneworld Frequent Flyer Program: AAdvantage. What will it look like? TBA ...Status Levels: unknown, perhaps 3 to conform with oneworld? TBA Lounge program: Admirals Club? TBA Youtube videos regarding "New American is Arriving" Merger expected to close December 9, 2013; fully completed by: (2014 or 2015? TBA) ================================================== ===== Combined by merging following airlines: US Airways reverse takeover of American Airlines (2012 figures) American Airlines: Began service: 1934 Codes: IATA AA / ICAO AAL Call sign: AMERICAN Parent: AMR Corporation (AAMRQ), Ft. Worth, TX (deadline 1 April 2013 to file reorganization plan with court, 1 April for approvals) CEO & Chairman: Tom Horton Hubs: DFW, JFK, LAX, MIA, ORD Alliance: Founded oneworld alliance 1999 with BA, CP, CX and QF Frequent Flyer Program: AAdvantage, founded May 1981 ...Status Levels (3): Gold (25,000 EQM or EQ Points / 30 EQS 1 c/y); Platinum (50,000 EQM or EQP / 60 EQS; Executive Platinum (100,000 EQM or EQP / 100 EQS) Lounge program: Admirals Club and Flagship Lounge (latter premium lounge) Other airlines taken in include TCA, TWA, Reno Air, AirCal Link to Wikipedia American Airlines article Highlights for 2012:
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Aircraft Type Number Orders NotesBegan service: 1939 (All American Aviation), 1952 (Allegheny Airlines), 1979 (rebranded US Air), 1996 (rebranded US Airways) 2005: Reverse takeover by America West / HP takes name of, and results in, current US Airways name Codes: IATA US / ICAO AWE Call sign: CACTUS Parent: US Airways Group (LCC), Tempe AZ CEO: Doug Parker; President, Scott Kirby Hubs: CLT, LAX, PHL, PHX (DCA is a "focus city", not included the hubs in listing) Alliance: Star Alliance Frequent Flyer Program: Dividend Miles ...Status Levels (4): Silver (25,000 PQM / 30 PQS 1 c/y); Gold (50,000 PQM / 60 PQS; Platinum (75,000 PQM / 90 PQS); Chairman's (100,000 PQM / 120 PQS) Lounge program: US Airways Club Other airlines taken in include Lake Central, Mohawk, Piedmont and PSA Link to Wikipedia page on US Airways Highlights for 2012:
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For updates, please see the following website that has been established: http://newamericanarriving.com |
Information highlights
27 Nov 2013:
● U.S. Bankruptcy Court for the Southern District of New York approved the settlement of the lawsuit reached with the U.S. Department of Justice and certain states relating to the merger of AMR Corp. and US Airways Group. The court ruled that the merger may be consummated despite a pending (as of 11/27/13) private antitrust lawsuit. 12 Nov 2013:● AMR Corporation And US Airways Announce Settlement With U.S. Department Of Justice And State Attorneys General 13 Aug 2013: ● The US Department of Justice files suit in Washington Federal court to block the merger; the suit includes the Attorneys General of Arizona, District of Columbia, Florida, Pennsylvania, Tennessee, Texas and Virginia. The entire DoJ document can be read here. 5 Aug 2013● European Union authorities approve merger 01 Aug 2012:● American Airlines’ creditors and shareholders voted to accept the company’s plan of reorganization, the airline said on Thursday. 12 Jul 2012:AMR, American’s parent, reported that, out of the eight creditor classes that were entitled to vote, a minimum of 88% in each class voted in favor of the plan. This also represented more than 97% of the claims value... Link. ● US Airways shareholders approve merger overwhelmingly (99.6% of votes). Link. April 15, 2013: ● AMR, American Airlines file bankruptcy reorganization plan; AMR also filed a 570-page prospectus Monday with the Securities and Exchange Commission that spelled out the details of the merger. Link to Dallas Morning News article. (Still pending are the DOJ clearance, creditor and US Airways shareholder approval; some estimates give 60 days for all of this to transpire.) March 27 2013:● Bankruptcy Court Judge Lane approves merger, but declines to approve Mr. Horton's proposed $20M severance package (DOJ approval not implied). Link to article. March 20 2013:● AA and US form "Integration Management Office" and hire McKinsey & Co. to advise - link to Dallas Morning News article March 19, 2013: ● Joint Statement of Doug Parker, CEO of US Airways, and Tom Horton, CEO of American Airlines before the Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy, and Consumer Rights <link> to PDF of full statement. February 26 2013: ● Link to Miami Herald article: Members of Congress press company officials about possible effects of AA - US merger. February 14 2013: Merger formally announcedFebruary 13 2013: Media announce merger agreement by both AA and US boards of Directors; formal announcement to be made 14 Feb 2013 ● In part, Reuters stated on 13 Feb that: ● Both AMR, US Air boards OK merger, deal announcement Thurs ● ABC News article ● AMR creditors OK merger earlier on Wednesday -sources ● Deal to value combined airline at around $11 bln -sources ● Merged American-US Air to have 12-member board -sources ● AMR unsecured creditors to be made whole plus accrued interest ● Seattle Times / AP article ● Washington Post / Reuters article OTHER links of interest: |
Highlights of the "new" American Airlines
Airline branding and HQ: The combined company will retain the iconic American Airlines brand name, and will provide you with more choices and better service throughout the world. The combined company will be headquartered in Dallas-Fort Worth and will maintain a significant corporate, operational and hub presence in Phoenix. (US, 14 Feb 2013)
Airline operation: At this time, we will continue to operate as two separate carriers flying the same schedules that we do today. As the new American takes shape, we expect to offer even better schedule options in our existing hubs, provide more choices than any other airline across the East Coast and Central U.S. regions, expand our network on the West Coast and enhance our existing loyalty program benefits with more opportunities to earn and redeem miles across the combined network. (US, 14 Feb 2013) Booking / Reservation System: AA has Sabre, US Shares. "Starting now, we will evaluate systems in the marketplace. It’s premature to say which one we would select going forward but it will be a 12 to 18 month-long process. A but if you look at mergers that were successful, you look for where the least disruption would be [in a system conversion]." Derek DeCross, AA VP Global Sales, 14 Feb 2013 link Combined route map (14 Feb 2013): Domestic link and Global link Fleet and configuration: The combined company is expected to maintain all hubs currently served by American Airlines and US Airways, with increased service to existing markets and service to new cities. It is also expected to provide the most service across the East Coast and Central regions of the U.S., including the East Coast shuttle, and to expand its presence and further strengthen its network on the West Coast ... Customers will also benefit from American's landmark agreements with Airbus and Boeing, designed to transform the new American Airlines fleet over the next four years and solidify its fleet plan into the next decade. The combined airline is planning to take delivery of 607 new aircraft, including 517 narrowbody aircraft and 90 widebody international aircraft, most of which will be equipped with advanced in-seat inflight entertainment systems offering thousands of hours of programming, inflight Wi-Fi offering connectivity throughout the world, and "Main Cabin Extra" seating with 4 to 6 inches of additional legroom in the Main Cabin. In addition, as currently provided on US Airways' Airbus A330 international Envoy service, American's new transcontinental and international widebody aircraft will feature lie-flat, all-aisle access premium class seats. (US Airways, 14 Feb 2013) After merger completion, AA pilots will fly AA aircraft and US pilots will fly US aircraft, for three years thereafter. (US presentation to SEC, 10 Jan 2013)) Frequent Flyer Program: Until the merger is complete, US Airways and American Airlines will remain separate companies and each company will maintain its current loyalty programs (US Airways – Dividend Miles and American Airlines – AAdvantage). Existing miles will be honored, and there will be no impact to your US Airways MasterCard® or US Airways Visa® card. You can continue to earn and redeem mileage for travel awards with us and our Star Alliance partners. You can also continue to book, track and manage flights on usairways.com. (US, 14 Feb 2013)
Originally Posted by Suzanne L. Rubin
"...At this time, American and US Airways will remain separate companies and each company will maintain its current loyalty program — our AAdvantage program and US Airways Dividend Miles. I want to assure you that your AAdvantage miles are secure and existing miles will continue to be honored. Likewise, your elite qualifying miles and your elite status, including lifetime status granted under the Million MilerSM program are secure and remain intact. In addition, you will continue to earn miles through existing AAdvantage participating companies and you will be able to redeem those miles for the same great awards — flights, upgrades, car rentals and hotels just to name a few.
The AAdvantage program, including the elite program and its various facets such as lifetime status, upgrades, and bonus mileage, are intact, and as an AAdvantage elite status member, you will continue to enjoy unparalleled benefits through one of the largest and most popular loyalty programs in the world and you can continue to book, track and manage flights and your AAdvantage account on AA.com. Ultimately, the combined company is expected to offer members more opportunities to earn and burn miles from an expanded global network of routes and partnerships, unmatched redemption options including flights, hotels, car rentals, vacation packages, one-way awards, lounge memberships, and much more. We expect the transaction to close in the third quarter of 2013, subject to customary approvals and closing conditions, and I will keep you updated throughout the process. In the interim, I invite you to visit www.aa.com/arriving for more information. (President — AAdvantage® Loyalty Program, 14 Feb 2013) MERGER FAQ (US, 14 Feb 2013): Code:
Frequently Asked Questions |
Horton only sticking around for a bit.
From Dallas Morning News via WSJ: One new detail: the WSJ quotes a someone as saying that Tom Horton will hang around as non-executive chairman until sometime in 2014, until the merged company’s first annual shareholders meeting. AMR typically holds its meetings on the third Wednesday in May, which in 2014 would be May 21. http://aviationblog.dallasnews.com/2...e-merger.html/ |
Thanks to all for the "pokes" for corrections / amendments. ^
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received an official email announcement from doug parker at us airways sent to all their frequent flyers this morning--plenty of reassuring info--nothing from american as yet:
The new American is arriving US Airways and American Airlines combine to create premier global carrier As a valued member of the US Airways Dividend Miles® program, we wanted to inform you of some exciting news. Today we announced that American Airlines and US Airways will combine to create a premier global carrier. Operating under the iconic American Airlines name, one of the most recognized brands in the world, the combined airline will have a robust global network, a strong financial foundation and one of the most modern and efficient fleets in the industry. We are excited about what the combination of our two great airlines means for our valued customers. More Access to More Destinations The combined company will provide customers with access to more choices and increased service across a larger worldwide network and through an enhanced oneworld® Alliance, creating more options for travel and benefits both domestically and internationally. The new American Airlines will offer more than 6,700 daily flights to 336 destinations in 56 countries. The combined company is expected to maintain all hubs currently served by American Airlines and US Airways, with increased service to existing markets and service to new cities. It is also expected to provide the most service across the East Coast and Central regions of the U.S., including the East Coast shuttle, and to expand its presence and further strengthen its network on the West Coast. Enhanced Services Customers will also benefit from American's landmark agreements with Airbus and Boeing, designed to transform the new American Airlines fleet over the next four years and solidify its fleet plan into the next decade. The combined airline is planning to take delivery of 607 new aircraft, including 517 narrowbody aircraft and 90 widebody international aircraft, most of which will be equipped with advanced in-seat inflight entertainment systems offering thousands of hours of programming, inflight Wi-Fi offering connectivity throughout the world, and "Main Cabin Extra" seating with 4 to 6 inches of additional legroom in the Main Cabin. In addition, as currently provided on US Airways' Airbus A330 international Envoy service, American's new transcontinental and international widebody aircraft will feature lie-flat, all-aisle access premium class seats. Largest Loyalty Program As a US Airways Dividend Miles member, you will be able to enjoy unparalleled benefits. Here are some of the benefits the combined company will offer our members: Even more opportunities to earn and redeem miles from an expanded global network of routes and partnerships; 122 new destinations through which to redeem miles Earn miles with more than 1,000 participating companies, including more than 20 airline partners Unmatched redemption options including flights, hotels, car rentals, vacation packages, one-way awards and club memberships; and Worldwide benefits through the oneworld Alliance. Until the merger is complete, US Airways and American Airlines will remain separate companies and each company will maintain its current loyalty programs (US Airways – Dividend Miles and American Airlines – AAdvantage®). In the meantime, your existing miles will continue to be honored, and there will be no impact to your US Airways MasterCard® or US Airways Visa® card. You can continue to book travel and track and manage flights and frequent flyer activity on www.usairways.com. You can also continue to earn and redeem mileage for travel awards with us and our Star Alliance™ partners. We expect the combination to be completed in the third quarter of 2013. Additional information will be provided to customers of our frequent flyer program on any future program updates, including account consolidation or benefit alignment. In the meantime, please visit www.usairways.com/arriving for the latest information. We are committed to providing you with safe and reliable service, and we look forward to continuing to serve you on US Airways and on the new American Airlines. Sincerely, Doug Parker Chairman and CEO, US Airways |
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at least one court decision, just happened (no others in apr/may?)
http://www.nysb.uscourts.gov/content/judge-sean-h-lane not seeing latest opinion, but also has schedule http://www.google.com/search?q=us+airways+merger+judge (a june 4 presentation to creditors was mentioned, not seeing coverage) latest says leadership announcement in a week or so > http://www.bloomberg.com/news/2013-0...-mid-june.html different outlets have different quotes |
US Airways shareholders approve merger overwhelmingly (99.6% of votes).
The merger agreement was approved by the affirmative vote of the holders of a majority of the outstanding shares of US Airways stock, which represented over 99% of the votes cast by US Airways shareholders on the proposal. Of the 132,788,060 shares voted, 132,273,780 shares voted in favor of the proposal; 257,757 shares voted against; and 256,523 abstained. Shareholders also approved other proposals related to the merger. |
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AMR-US Airways Deal Blocked by US in Antitrust Suit
The US Department of Justice has filed suit in Washington Federal court to block the merger; the suit includes the Attorneys General of Arizona, District of Columbia, Florida, Pennsylvania, Tennessee, Texas and Virginia. The entire DoJ document can be read here. |
November 12
American Airlines and US Airways said on Thursday they are seeking a November 12 trial date in U.S. federal court to hear the challenge by the U.S. Justice Department to their proposed merger, which would form the world's biggest carrier.
"We are eager to show that the (Justice Department) action would deny millions of customers access to a more competitive airline that will offer customers what they want, delivering significant benefits to consumers, communities and employees," US Airways Chief Executive Doug Parker said in the airlines' statement. Parker would become CEO of the merged entity The Justice Department filed a lawsuit last week seeking to block the merger, saying it would reduce competition and lead to higher airfares. More on same topic: American Airlines and US Airways are seeking a 10-day trial that would begin Nov. 12 in U.S. federal court to fight the challenge by the U.S. Justice Department to their proposed merger, which would form the world's biggest carrier. |
The scheduling conference will take place on 30 August. At that time the Judge, who's the only one setting the schedule, should make her decision known.
Until then, all the parties can do is argue for why one date is better than another. |
3 March 2014
The DOJ proposes March 2014: http://aviationblog.dallasnews.com/2...airlines.html/
The proposed merger of American Airlines and US Airways, which would create the world’s largest airline, presents a substantial threat to competition in air travel in local markets throughout the United States and will likely result in hundreds of millions of dollars in harm to consumers annually. All this is at a time when both American and US Airways are reporting record earnings and American is set (absent the merger) to embark on a period of procompetitive expansion. Given what is at stake, this Court should allow both sides a full opportunity to develop the relevant evidence in discovery and to present that evidence at trial. See, e.g., FTC v. Whole Foods Market, Inc., 548 F.3d 1028, 1041 (D.C. Cir. 2008) (Brown, J.) (explaining, in a government merger challenge, that the district court should take “whatever time it needed to consider the [] evidence fully”). Defendants’ attempt to rush this matter to a trial on the merits in fewer than 75 days following the initial Scheduling Conference creates the very real risk that a challenge to a $14 billion merger—in dollar terms one of the largest merger challenges ever adjudicated—will be resolved on less than an appropriate record. Antitrust cases typically involve a host of “complicated legal, factual and technical (particularly economic) questions” and therefore require “extensive discovery.” Manual For Complex Litigation (Fourth) § 30 (2004). Plaintiffs’ proposed trial-ready date of March 3, 2014, with trial starting thereafter at the Court’s convenience, would leave four months for party and non-party document discovery and fact depositions, a month for expert reports and depositions, and then a month for pretrial motions and briefs. This schedule, while expeditious for a case of this magnitude, seeks to ensure that the Court will have an appropriate record. |
Judge sets tentative trial date of November 25:
http://www.baltimoresun.com/business...,5655782.story |
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