New American Airlines Merger Transaction Completed Monday

AMR Corporation and US Airways Group, Inc. have announced the completion of their merger to officially form American Airlines Group Inc. and begin building the new American Airlines.

According to a release posted on the carrier's website, the new American "has a robust global network with nearly 6,700 daily flights to more than 330 destinations in more than 50 countries and more than 100,000 employees worldwide. The combined airline has the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace. Customers will soon enjoy access to more benefits and increased service across the combined company's larger worldwide network and through an enhanced oneworld® Alliance. US Airways will exit Star Alliance on March 30, 2014 and will immediately enter oneworld on March 31, 2014. With an expanded global network and a strong financial foundation, American will deliver significant benefits to consumers, communities, employees and stakeholders."

"Our people, our customers and the communities we serve around the world have been anticipating the arrival of the new American," said Doug Parker, CEO of American Airlines. "We are taking the best of both US Airways and American Airlines to create a formidable competitor, better positioned to deliver for all of our stakeholders. We look forward to integrating our companies quickly and efficiently so the significant benefits of the merger can be realized."

The airlines' separate websites, aa.com and usairways.com, as well as the two airlines' reservations systems and loyalty programs, will continue to operate separately until further in the integration process.

The company says employees of the new American will benefit from being part of a company with a more competitive and stronger financial foundation, which will create greater career opportunities over the long term. The completed merger also provides the path to improved compensation and benefits for employees.

Alignment of pay, benefits, work rules and other guidelines for employees of both airlines will be phased in over time so that all changes can be carefully considered. Represented employees will continue to work under their respective Collective Bargaining Agreements, with the modifications provided under the negotiated Memoranda of Understanding for certain groups. American's non-represented Agents, Representatives and Planners will operate under their current terms and conditions of employment with merger-related adjustments.

The Dallas Morning News reports that, in his first message to employees as the head of the merged airlines, Parker said "In Dallas/Ft Worth this (Monday) morning, I will be joined by employees and labor leaders to celebrate the completion of the combination of American and US Airways and the introduction of the new American by ringing the opening bell on the NASDAQ stock exchange. We’re expecting hundreds of you to join us at the celebration, and senior leaders and I will help celebrate at employee events throughout the system.

"After today’s celebration the real work begins. Several milestones we will achieve over time will mark the progress we are making. These include integrating our networks, combining our loyalty programs and achieving a single operating certificate. Our integration work will be conducted carefully to ensure our frontline co-workers are well equipped and well prepared to serve our customers."

FMI: www.aa.com/newamerican