The deal would make the merged company the world’s largest airline, and it would be the last of the major consolidations among U.S. air carriers. Delta Air Lines Co. (NYSE: DAL) merged with Northwest Airlines in 2008 and United and Continental merged in 2010 to form United Continental Holdings Inc. (NYSE: UAL), currently the world’s largest airline.
The U.S. Airways-American talks have reportedly been focused on valuation and management. According to Reuters, U.S. Airways’ CEO would become the CEO of the merged company, and the current American Airlines CEO would become nonexecutive chairman until the new company holds its first annual meeting, sometime in 2014.
Will this merger be any smoother than the ones that formed Delta and United Continental? Not likely. After two years, United and Continental only recently managed to get the reservations systems united, and merger costs have been much higher than expected. The Delta-Northwest deal was not significantly smoother.
So, when the American-U.S. Airways deal is done, expect at least a couple of years of turbulence before the company finds smoother air.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.