Could US Airways-American Airlines Merger Go Through This Week?
The much-anticipated merger between US Airways (NYSE:LCC) and American Airlines could be right on the horizon, as two key meetings are expected to take place this week that could decide the fate of the two airlines.
The idea of a merger between the two airlines has been on the table for almost a year now, since AA went into bankruptcy, though AA’s Tom Horton had resisted the idea early on. A combination of the two airlines would create a powerful player in the air carrier industry, as it would become the largest airline by passenger traffic, exceeding Delta (NYSE:DAL) and United Continental (NYSE:UAL).
There are still a few things that could stand in the way of the merger, but one thing that shouldn’t is the revenue potential for the combined carrier. People familiar with the merger plan said it would bring revenue and cost benefits of nearly $1 billion. On top of that, 2012 figures suggest that annual revenue could reach $38.69 billion for the merged carrier, putting it on top of United Continental by revenue.