American-US Airways Merger Sealed With $11 Billion Deal

AMERICAN AIRLINES BOEING 777 300ER ON GATE 2013 6

Photo: Chris Sloan/Airchive

(Reuters) – American Airlines and US Airways Groupsaid they plan to merge in a deal that will form the world’s biggest air carrier, which will have a combined equity value of $11 billion.The merger caps a wave of consolidation that has helped put U.S. airlines on more solid financial footing.

The widely expected deal has been more than a year in the making. American, a unit of AMR Corp, filed for Chapter 11 bankruptcy in November 2011, and US Airways began its pursuit of a merger in early 2012.

(Reporting by Karen Jacobs in Atlanta and Sagarika Jaisinghani in Bangalore)

Copyright (2013) Thomson Reuters. Click for restrictions

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.