American Airlines – US Airways Merger Will Proceed

aa us merger

The New American

With the settlement taken care of, the American Airlines & US Airways merger can fully proceed.

Frequent Business Traveler has a great article on the merger and what you, as a customer, need to know.

January 7, 2014 is being targeted as the “big day” where there are rumors of the two airlines merging operations to function as a single airline. More on that when details surface.

The main parts of the settlement are that the new AA/US will have to give up slots at Reagan National Airport outside Washington and at New York’s LaGuardia Airport.

Here’s a snippet from Chairman & CEO of US Airways, Doug Parker:

We are pleased to announce that American Airlines and US Airways will combine to create a premier global airline. Our combined airline joins two highly complementary networks with access to the best destinations around the globe – offering you increased choices, improved efficiency and better options to explore the globe with our oneworld® Alliance.

The combined company will retain the iconic American Airlines brand name, and will provide you with more choices and better service throughout the world. The combined company will be headquartered in Dallas-Fort Worth and will maintain a significant corporate, operational and hub presence in Phoenix.

Implications

A few thoughts on what this merger will bring.

– No surprises here. The new merged airline will stay in the oneworld Alliance.

– With nothing left in their way, expect the new American to devalue their award chart along the lines of what everyone else has been doing this year (United, Hyatt).

– They could even require certain spend thresholds combined with miles flown to achieve elite status tiers. This is something that Delta and United have already put in place for 2014.

– I wonder what 2014 will bring for top tier elites in both programs. Joann and I will be top tier Executive Platinum on AA in a month. When 2 airlines merge, so do their elites and that could really dilute benefits.

– Most importantly, I would expect fares to rise and stay that way. Less competition is just bad, in general. There are really only 3 major US airlines now. Hopefully the low cost carriers like JetBlue and Southwest can step up.

For more information on the American Airlines & US Airways merger, visit newamericanarriving.com.