Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Bankrupt American Airlines Merges with US Airways
Author: Joel R. Glucksman
Date: February 19, 2013
Key Contacts
Back
American Airlines and US Airways have announced an $11 billion merger that will create the largest airline carrier in the world.
The announcement comes after months of rocky deals, labor disputes, and pension agreements brought on by American Airlines’ bankruptcy. Discussions of a merger have been in place since the company filed for protection under bankruptcy law in 2011, and creditors pressured American to merge, rather than try to emerge from bankruptcy independently.
The terms of the new partnership dictate that US Airways shareholders will own 28 percent of the combined airline, while American Airlines shareholders, creditors, labor unions, and employees will own 72 percent. Although the carrier will retain its name, it will be operated by US Airways CEO Doug Parker. American Airlines CEO Tom Horton will serve as chairman of the new company until mid-2014, said sources close to the private deal.
The partnership paves the way for the combined company to remain competitive with other large U.S. carriers, including United, Delta, and Southwest. For example, the two airlines have only 12 routes that overlap out of a combined 900 routes that the two airlines serve together, Parker told the New York Times. He also noted that more cities would be serviced once the merger goes into effect, as American flies to 130 cities that US Airways does not service. In addition, US Airways flies to 62 cities that are not served by American. The merger will enable the new company to offer 6,700 daily flights to 336 destinations in 56 countries, the Times reports.
“I have been a long proponent of consolidation in the industry,” Parker said in a conference call. “And this is the last major piece needed to rationalize the industry and make it profitable.”
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know
Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know
Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business
In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
Author: Dan Brecher
How to Reduce Legal Risk as Your New Jersey Business Grows in 2026
For many New Jersey businesses, growth is a primary objective for the New Year. However, it is important to recognize that growth involves both opportunity and risk. For example, business expansion often results in complex contracts, an increased workforce, new regulatory requirements, and heightened exposure to disputes. Without proactive planning, even routine growth can lead […]
Author: Ken Hollenbeck
Crypto Investor Protection: SEC and CFTC Enforcement Trends
Crypto investor protection continues to evolve, with the SEC and CFTC investing resources and coordinating more closely to uphold regulatory standards. Whether you’re a retail investor, an institutional trader, or part of a crypto startup, understanding enforcement trends is essential for navigating this dynamic and high-stakes regulatory environment. Crypto Is No Longer the Wild West […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.