TheDeal: US Airways Shareholders Approve Merger
NEW YORK (The Deal) -- Shareholders of US Airways Group
Tempe, Ariz.-based US Airways in February announced plans to combine with AMR
Terms of the deal call for owners of US Airways to receive about 28% of the equity in the combined company, with the remainder going to creditors, workers and shareholders of AMR.
US Airways CEODoug Parker will be chief executive of the combined company, with current AMR CEO Tom Horton becoming nonexecutive chairman.
The deal is the fourth in a wave of airline consolidation that would leave the country with four large domestic carriers. Delta Air Lines
The deal is still subject to regulatory approval and final confirmation of the U.S. Bankruptcy Court for the Southern District of New York.
US Airways officials said Friday they expect to complete the deal before the end of the third quarter. However, some in the industry have questioned whether the U.S. regulatory review will be completed on time, with regulators paying particular attention to the combination's large share of landing rights at Washington's Reagan National Airport.
During US Airways annual meeting Friday, Parker warned that if the combined company is forced to divest slots in Washington, it would likely force the airline to cut nonstop service to small communities.
-- Written by Lou Whiteman