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American Airlines CEO Doug Parker gathered with employees of the new American Airlines this morning at headquarters in Fort Worth, Texas to mark the closing of the $11 billion US Airways and American Airlines merger, and the termination of AMR Corp.’s bankruptcy restructuring.
Employees of the airline gathered with Parker, who headed US Airways, choreographed the merger and will lead the new American Airlines Group with now-former American Airlines CEO Tom Horton as chairman, beginning at 7:45 a.m. Central, and from the remote location were to ring NASDAQ’s opening bell.
With the closing of the $11 billion transaction taking place before the market’s open, the airline’s common stock was to begin trading on the NASDAQ Global Select Market under the symbol “AAL.”
AMR Corp.’s Chapter 11 bankruptcy, which was filed in November 2011, and the merger process had twists and turns at almost every juncture.
Complete Coverage of American Airlines and US Airways Merger:
- U.S. Supreme Court Judge Denies Bid To Block New American Airlines Merger
- American Airlines CEO Tom Horton Sends Thank You Note to Employees
- American Airlines As An Investment Gem? Looks Like It For Now
- The New American Air Takes on Its To-Do List: Loyalty, Labor and Computers
- Leaders of the New American Airlines ‘Couldn’t Be Happier’ With Merger Concessions
- American Airlines Again Defends CEO’s $20 Million Golden Parachute
- New American Airlines won’t repeat Pan Am and TWA mistakes, official says
- American Airlines retirees’ poignant letters to court on their benefits post-merger
- The new American Airlines: How Doug Parker beat out Tom Horton for CEO
- The new American: detailed investor presentations from both companies
- What U.S. flyers think about the AA-US Air merger, as told on Twitter
- It’s officially official: American and US Airways merge to create world’s largest airline
Then-American Airlines CEO Horton resisted the overtures of Parker, who lined up the unions to support the marriage. Horton’s proposed $20 million severance, which was to be doled out after he departs from his chairman’s role of the merged airline became an issue in the AMR Corp. bankruptcy proceedings, and the court ultimately held that the matter would have to be decided after the merger.
The most notable curve ball was the U.S. Justice Department stepping in August 2013 and filing suit to block the merger on antitrust grounds.
After three months of uncertainty, the DOJ and the merger partners reached a settlement, which included divestiture of 69 slot pairs at Reagan National Airport and LaGuardia, as well as the loss of two gates each at Miami, Chicago O’Hare, Los Angeles, Boston Logan and Dallas Love Field.
The new American loses 112 daily flights as a result of the settlement, and will have 6,700 daily flights.
One of the last major steps — but not the last — leading to today’s closing of the transaction, was bankruptcy court approval of the settlement, and this put the process on a fast track.
But even up until Saturday night December 7, there must have been some nail-biting at US Airways and American Airlines. On that evening, U.S. Supreme Court Justice Ruth Bader Ginsberg denied a bid by consumers and travel agents to block the merger.
As much angst as there was during the merger process, now the real work begins as the new American continues work on the arduous task of merging fleets and frequent flyer programs, and migrating to the American Airlines reservations system.