It has been a long time coming to see the possible end to the American Airlines bankruptcy case. After a grueling fourteen months of restructuring, layoffs, and service cuts, the notable Chapter 11 case could finally be headed towards closure.
For months, American executives have been fighting an impending merger with US Airways. After several rounds of layoffs, terminal closings, flight reductions and labor contract revisions, the company has finally agreed to a merger. Last Wednesday, AMR and US Airways reached a deal for an $11 billion buyout agreement that would combine the two airlines into the largest, single airline provider in the country.
Still pending bankruptcy court approval, the merger will bring a combined 900 planes, 3,200 daily flights and 95,000 employees into the black as finances are finally expected to resolve as part of the deal. The carrier will keep the American Airlines name and logo, but be run by US Airways CEO Doug Parker. American’s existing CEO, Tom Horton, will serve as chairman of the new company until mid-2014, when the company is expected to officially take flight as a new, solidified unit.