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American Airlines Group

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American Airlines Group, Inc.
Company typePublic
Nasdaq: AAL
IndustryAviation
PredecessorAMR Corporation
US Airways Group
FoundedDecember 9, 2013 (2013-12-09)
Headquarters
Fort Worth, Texas
,
United States
Number of locations
More than 330 destinations;[1] hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington
Area served
Worldwide (more than 50 countries)[1]
Key people
Doug Parker (CEO)
Scott Kirby (President)
Thomas W. Horton (Chairman)
ServicesAir transportation
Revenue$38.7 billion (2012)[2]
Number of employees
Approx. 120,000[3]
SubsidiariesAirlines:
American Airlines
Envoy
Piedmont Airlines
PSA Airlines
US Airways

Mainline Air brands :
US Airways Shuttle

Regional Air brands:
American Eagle
US Airways Express
Websitewww.aa.com

American Airlines Group, Inc. is a publicly traded airline holding company headquartered in Fort Worth, Texas. It was formed by the December 9, 2013 merger of AMR Corporation, the parent company of American Airlines, and US Airways Group, the parent company of US Airways.[4] 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.[5] The integration of American Airlines and US Airways under a single operating certificate is expected to be completed in late 2015.[1]

Merger between AMR and US

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.[5] In March, AMR's CEO Tom Horton said that the company was open to a merger.[6] 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.[7] On April 20, American Airlines' three unions said they supported a proposed merger between the two airlines.[8] 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.[9]

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.[10] 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.[11][12] 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.[13] On July 12, US Airways shareholders approved the proposed merger.[14]

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),[15] 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.[16] In early October, 2013, the District Attorney of Texas quit the anti-trust lawsuit.

The Department of Justice announced that a settlement of its lawsuit was reached on November 12, 2013. The settlement will require the merged airline to give up landing slots or gates in 7 major airports.[17] Under the deal, the new American is required to sell 104 slots at Ronald Reagan Washington National Airport and 34 slots at La Guardia 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.[18] Some of the slots will be sold to low-cost carriers such as JetBlue and Southwest Airlines.[19]

A private antitrust suit, filed by a group of 40 passengers and travel agents, also sought to block the merger.[20] 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.[21] 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.[22]

Following the Department of Justice approval, US Airways and AMR announced that the merged company will trade on the NASDAQ stock exchange under the symbol AAL.[23][24]

Combined fleet

Mainline

American Airlines + US Airways fleet
Aircraft In Service Orders Passengers Notes
F J W Y Total
Airbus A319-100 15 + 93[25] 50 — 18 102 128
Airbus A320-200 73 — — 12 138 150
Airbus A321-200
Transcontinental 		5 + 93 60 + 17[25] 10 20 36 36 102
Airbus A321-200 —
TBA
Airbus A321neo — 130[26]
TBA
Deliveries from 2017.
Airbus A330-200 11 4[27] 20 — 238 258
Airbus A330-300 9 — 28 — 263 291
Airbus A350-900 — 22[28] 36 — 294 330 Delivery from 2017
Boeing 737-400 14 — — 12 132 144 To be phased out by early 2015
Boeing 737-800 226 80 16 — — 132 148
16 — — 148 160
Boeing 737 MAX 8 — 100[29]
TBA
Boeing 757-200
Domestic 		71 + 9 — 22 — — 166 188
Boeing 757-200
International 		18 + 15 — 16 — — 166 182
Boeing 767-200ER 9 + 10 — 10 30 — 128 168 Retired for AA seat by May 7 2014
Boeing 767-300ER 58 — — 30 — 195 225
Boeing 777-200ER 47 — 8 52 30 157 247
Boeing 777-300ER 10 10[30] 8 52 30 220 310
Boeing 787-8 — 12[29]
TBA
Deliveries from 2014.[31]
Boeing 787-9 — 30[29]
TBA
Deliveries from 2014.[31]
McDonnell Douglas MD-80 151 — 16 — — 124 140 To be phased out by 2018
Embraer 190 20 — 11 — 88 99
Total 954 473

American Eagle

The combined American Eagle (airline branded) fleet, including Envoy and PSA Airlines , currently consists of the following non-mainline regional jet aircraft operated by airline businesses and firms independent of American Airlines Group :[32]

American Eagle
Airline IATA Service ICAO Code Callsign Aircraft In fleet Passengers Parent
F Y Total
Envoy MQ EGF Eagle Flight Bombardier CRJ700
Embraer ERJ-140
Embraer ERJ-145 		224 9
0
0 		54/56
44
50 		63/65
44
50 		American Airlines Group
Chautauqua Airlines RP CHQ Chautauqua Embraer ERJ-140 14 0 44 44 Republic Airways Holdings
ExpressJet EV ASQ Acey Bombardier CRJ-200 11 0 50 50 SkyWest, Inc.
Republic Airlines[33] YX RPA Brickyard Embraer 175 19 12 64 76 Republic Airways Holdings
SkyWest Airlines OO SKW SkyWest Bombardier CRJ-200 12 0 50 50 SkyWest, Inc.
PSA Airlines JS JIA BlueStreak Bombardier CRJ-900 30 12 64 76 American Airlines Group
Total 310

Hub network

When completed, the merged airline will have the following hubs:[34]

Proposed hubs of combined airline - sorted by number of daily flights
Airport Destinations Daily flights[5] Hub airline before merger Share AA Share US Share AA+US [35]
Dallas, TX - DFW 172 877 American 67% 7% 74%
Charlotte, NC - CLT 131 665 US Airways 7% 63% 70%
Chicago, IL - ORD 113 522 American 36% 7% 43%
Philadelphia, PA - PHL 107 469 US Airways 5% 49% 54%
Phoenix, AZ - PHX 74 316 US Airways 5% 27% 32%
Miami, FL - MIA 109 310 American 66% 6% 72%
Washington, DC - DCA 75 292 US Airways 15% 34% 49%
Los Angeles, CA - LAX 44 180 American 18% 5% 23%
New York, NY - JFK 50 97 American 15% 3% 18%
American Airlines' and US Airways' top 10 2013 December airport departures[36]
Rank Airport Flights
1 Dallas/Fort Worth, Texas 834
2 Charlotte, North Carolina 526
3 Miami, Florida 490
4 Chicago-O'Hare, Illinois 322
5 Philadelphia, Pennsylvania 277
6 Los Angeles, California 180
7 New York-LaGuardia, New York 173
8 Washington, DC (Arlington, Virginia) 157
9 Boston, Massachusetts 147
10 New York-JFK, New York 130

Share figures in the table above indicate the percentage of total domestic passengers at each airport.

A key part of the government's objection to the proposed merger is the combined share of takeoff and landing slots at slot-controlled airports that are existing hubs for either American Airlines or US Airways. Slot-controlled airports have restricted access for new airline entrants or expanded service by competitive airlines. The table below shows the share of total takeoff/landing slots for each airline at slot-controlled airports:[37]

Slot holdings of key airlines at slot-controlled airports (February 2012)
Airport American % US Airways % AA + US % United % Delta % Other %
Washington DC (DCA) 14% 54% 68% 9% 12% 11%
NY LaGuardia (LGA) 22% 11% 33% 5% 46% 16%
New York JFK (JFK) 18% 1% 19% 4% 40% 36%
Newark Liberty (EWR) 5% 3% 8% 81% 6% 6%

References

  1. ^ a b c "World's largest airline formed as American Airlines and US Airways merge". AFP. 10 December 2013. Retrieved 10 December 2013.
  2. ^ Combined total of AMR Corporation and US Airways Group; see "The New American Is Arriving" (PDF). AMR Corporation and US Airways Group. Retrieved 10 December 2013.
  3. ^ Combined total of AMR Corporation and US Airways Group; see "Airlines at a Glance" (PDF). AMR Corporation and US Airways Group. Retrieved 10 December 2013.
  4. ^ "The new American Airlines". Chicago Tribune. Chicago Tribune Company. December 8, 2013. Retrieved December 8, 2013.
  5. ^ a b c Matt Joyce, Staff Writer (January 26, 2012). "US Airways CEO confirms interest in American Airlines". Charlotte Business Journal. Retrieved March 24, 2012. Cite error: The named reference ":0" was defined multiple times with different content (see the help page).
  6. ^ "American Airlines open to merger, CEO hints". publisher=Charlotte Business Journal. March 19, 2012. Retrieved March 24, 2012. {{cite web}}: Missing pipe in: |publisher= (help)
  7. ^ "WSJ: US Airways Considers Merger With American Airlines - NewsOn6.com - Tulsa, OK - News, Weather, Video and Sports - KOTV.com |". NewsOn6.com. Retrieved May 17, 2012.
  8. ^ "3 unions push American Air toward US Airways merger talks". chicago tribune. April 22, 2012. Retrieved April 20, 2012.
  9. ^ "Creditor, 'prospective merger partner' US Airways gives support to American exclusivity extension". LeveragedLoan.com. July 15, 2012.
  10. ^ "American Airlines' CEO to get $20 million severance". USAToday. February 19, 2013. Retrieved February 21, 2013.
  11. ^ "American Airlines, US Airways unveil $11 billion merger". Reuters. February 14, 2013. Retrieved February 14, 2013.
  12. ^ "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.
  13. ^ "AA-US Airways Merger Approved, Not CEO Severance". WDFW TV. Retrieved March 27, 2013.
  14. ^ Jones, Charisse. "US Airways shareholders OK American Airlines merger". USA Today. Retrieved July 15, 2013.
  15. ^ http://www.dallasnews.com/business/airline-industry/20130820-american-airlines-has-no-plan-b-will-take-antitrust-fight-to-court.ece
  16. ^ Evan Perez (August 13, 2013). "US government seeks to block American-US Airways merger". CNN.
  17. ^ Maxon, Terry (December 11, 2013). "Confirmed: Settlement reached in the American Airlines-US Airways case". Dallas News. Retrieved November 12, 2013.
  18. ^ Had Mouawad; Christopher Drew (November 12, 2013). "Justice Dept. Clears Merger of 2 Airlines". NY Times.{{cite news}}: CS1 maint: multiple names: authors list (link)
  19. ^ "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 12 November 2013.
  20. ^ American-US Merger Still Faces Private Antitrust Lawsuit. Frequent Business Traveler (2013-11-18). Retrieved on 2013-12-08.
  21. ^ Gives Green Light for American Air Exit from Bankruptcy and Merger with US Airways. Frequent Business Traveler (2013-11-27). Retrieved on 2013-12-08.
  22. ^ Supreme Court Declines to Block American, US Air Merger. Frequent Business Traveler (2013-12-08). Retrieved on 2013-12-08.
  23. ^ Ausick, Paul (15 November 2013). "Merged U.S. Airways, American Airlines Will List with Nasdaq". 24/7 Wall St. via Yahoo! Finance. Retrieved 15 November 2013.
  24. ^ us airways fact sheet
  25. ^ a b "American splits Airbus order equally between A319 and A321". FlightGlobal. Retrieved April 11, 2013.
  26. ^ "American Airlines acquires 260 Airbus A320 Family aircraft". Airbus S.A.S. July 20, 21, 2011. Retrieved July 20, 2011. {{cite web}}: Check date values in: |date= (help)
  27. ^ "US Airways 2010 Annual Report, pg 28". Retrieved 2011-08-08.
  28. ^ "American converts remaining A350-800s to larger -900s". Flightglobal. 2013-12-27. Retrieved 2013-12-27.
  29. ^ a b c "Boeing Orders". boeing.com. Retrieved February 7, 2013.
  30. ^ "American ups 777-300ER backlog to 20, CEO says". Flightglobal.com. 2013-02-01. Retrieved 2013-12-17.
  31. ^ a b "American Airlines firms up orders for 787, 737 MAX". Reuters. Retrieved 22 July 2013.
  32. ^ Production List Search - Planespotters.net Just Aviation. Planespotters.net. Retrieved on 2013-08-16.
  33. ^ American, Republic ink deal for large regional jets. Usatoday.com (2013-01-24). Retrieved on 2013-08-16.
  34. ^ "Home". Aa.com. Retrieved March 20, 2013.
  35. ^ "GAO, Issues Raised by the Proposed Merger of American Airlines and US Airways, June 19, 2013, Table 6 (share of total domestic passengers at each hub airport)" (PDF). Retrieved September 18, 2013.
  36. ^ "Flight Stats". anonymous. December 13, 2013.
  37. ^ GAO: Issues Raised by the Proposed Merger of American Airlines and US Airways, June 19, 2013, Table 7: : Slot Holdings of American and US Airways at Slot-Controlled Airports (February 2012), accessed September 18, 2013. http://www.gao.gov/assets/660/655314.pdf
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