American Airlines Group

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American Airlines Group, Inc.
Public
Traded as NASDAQ: AAL
NASDAQ-100 Component
S&P 500 Component
Dow Jones Transportation Average Component
Industry Aviation
Predecessors AMR Corporation
US Airways Group[1]
Founded December 9, 2013 (2013-12-09)
in Fort Worth, Texas[1]
Headquarters CentrePort, Fort Worth, Texas, United States[1]
Number of locations
 350 destinations*
Area served
 Worldwide[2]
Key people
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Production output
 6,700 daily flights[2] (2013)
Services Air transportation
Revenue Decrease US$ 40.990 billion[4] (2015)
Increase US$ 6.204 billion (2015)
Profit Increase US$ 7.610 billion[5] (2015)
Total assets Increase US$ 48.415 billion (2015)
Total equity Increase US$ 5.635 billion (2015)
Number of employees
 118,500 (2015)
Divisions American Airlines Cargo
American Eagle
American Airlines Shuttle[1]
Subsidiaries American Airlines, Inc.
Envoy Air Inc.
Piedmont Airlines, Inc.
PSA Airlines, Inc.[1]
Slogan Going for great.
Website www.aa.com
Footnotes / references
* Hubs in Charlotte, Chicago, Dallas, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington[6]

American Airlines Group, Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas. It was formed December 9, 2013, in the merger of AMR Corporation, the parent company of American Airlines, and US Airways Group, the parent company of US Airways.[7] 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.[8] The integration of American Airlines and US Airways was completed when the Federal Aviation Administration granted a single operating certificate for both carriers on April 8, 2015.[9]

History

Merger between AMR Corporation and US Airways Group

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.[8] In March, AMR's CEO Tom Horton said that the company was open to a merger.[10] 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.[11] On April 20, American Airlines' three unions said they supported a proposed merger between the two airlines.[12] 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.[13]

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.[14] 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.[15][16] 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.[17] On July 12, US Airways shareholders approved the proposed merger.[18]

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),[19] 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.[20] In early October 2013, the Attorney General of Texas quit the anti-trust lawsuit.

The Department of Justice reached a settlement of its lawsuit on November 12, 2013. The settlement will require the merged airline to give up landing slots or gates in 7 major airports.[21] Under the deal, the new American is required to sell 104 slots at Ronald Reagan Washington National Airport and 34 slots at LaGuardia 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.[22] Some of the slots will be sold to low-cost carriers such as JetBlue and Southwest Airlines.[23]

A private antitrust suit, filed by a group of 40 passengers and travel agents, also sought to block the merger.[24] 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.[25] 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.[26]

Following the Department of Justice approval, the merged company traded on the NASDAQ stock exchange under the symbol AAL.[27][28]

On July 13, 2015, American announced that it planned to discontinue the US Airways brand name on October 17, 2015. On October 16, US Airways flew its final flight, US Airways Flight 1939, which was a flight from Philadelphia-Charlotte-Phoenix-San Francisco-Philadelphia.[29]

Overview

Hubs

The merged airline operates the following hubs:[6]

American Airlines hubs
Airport Area served Type/region Airline before merger Destinations Daily flights
Charlotte Douglas International Airport Charlotte, North Carolina Second-largest hub, primary East Coast hub US Airways 155 740
Dallas/Fort Worth International Airport Dallas/Fort Worth, Texas Largest hub and primary gateway to Mexico. American Airlines 172 877
John F. Kennedy International Airport New York City, New York Secondary European/transatlantic gateway American Airlines 50 97
LaGuardia Airport Secondary Northeast hub US Airways
Los Angeles International Airport Los Angeles, California Primary Asian and Oceanic/transpacific gateway, primary Hawaiian gateway, secondary Western hub American Airlines 64 180
Miami International Airport Miami, Florida Primary gateway to Latin America American Airlines 109 310
O'Hare International Airport Chicago, Illinois Third-largest hub, primary Midwest hub American Airlines 113 522
Philadelphia International Airport Philadelphia, Pennsylvania Fourth-largest hub, primary European/transatlantic gateway US Airways 107 469
Phoenix Sky Harbor International Airport Phoenix, Arizona Fifth-largest hub, secondary Mexican gateway, primary Western hub US Airways 74 316
Ronald Reagan Washington National Airport Washington, D.C. Primary Northeast hub US Airways 65 292

References

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External links

  1. ↑ 1.0 1.1 1.2 1.3 1.4 Lua error in package.lua at line 80: module 'strict' not found.
  2. ↑ 2.0 2.1 Lua error in package.lua at line 80: module 'strict' not found.
  3. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  4. ↑ http://phx.corporate-ir.net/phoenix.zhtml?c=117098&p=irol-reportsannual
  5. ↑ http://phx.corporate-ir.net/phoenix.zhtml?c=117098&p=irol-reportsannual
  6. ↑ 6.0 6.1 Lua error in package.lua at line 80: module 'strict' not found.
  7. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  8. ↑ 8.0 8.1 Lua error in package.lua at line 80: module 'strict' not found.
  9. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  10. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  11. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  12. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  13. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  14. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  15. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  16. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  17. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  18. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  19. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  20. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  21. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  22. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  23. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  24. ↑ American-US Merger Still Faces Private Antitrust Lawsuit. Frequent Business Traveler (November 18, 2013). Retrieved December 8, 2013.
  25. ↑ Gives Green Light for American Air Exit from Bankruptcy and Merger with US Airways. Frequent Business Traveler (November 27, 2013). Retrieved December 8, 2013.
  26. ↑ Supreme Court Declines to Block American, US Air Merger. Frequent Business Traveler (December 8, 2013). Retrieved December 8, 2013.
  27. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  28. ↑ US Airways fact sheet
  29. ↑ Lua error in package.lua at line 80: module 'strict' not found.
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