NEW YORK (AP) - American Airlines and US Airways are announcing plans to merge, but it will be months, if not years, before passengers see any significant impact.
The $11 billion deal announced today would create the world's biggest airline. The combined carrier is to be called American Airlines, based in Fort Worth, Texas.
But the new company could operate as two separate airlines for quite some time.
American's parent company, AMR Corp., is still under bankruptcy protection and will need the court to approve the deal.
US Airways shareholders will also have to vote for a merger. Then the Department of Transportation and the Justice Department must sign off.
A main reason for merging is to link both airlines' networks, creating a system on par with Delta Air Lines and United.
The new company expects to have $40 billion in annual revenue and offer more than 6,700 daily flights to 336 destinations in 56 countries.
US Airways passengers will gain access to American's international destinations, particularly London and Latin America. American's passengers will be able to better connect to smaller U.S. cities that US Airways serves.
The Associated Press