Transportation
8:13 pm
Wed February 13, 2013

Reports: American, U.S. Airways Boards Approve Merger

The boards of AMR and US Airways have approved a merger Wednesday night that would create the world largest carrier, The Wall Street Journal is reportingciting "people familiar with the matter."

The paper reports that the merger will be formally announced Thursday.

Earlier today, Bloomberg reported on some of the terms of the deal:

"While the final terms weren't immediately available, the companies had agreed that AMR creditors would own 72 percent of the new carrier and that US Airways stockholders would get 28 percent, people familiar with the matter have said. US Airways Chief Executive OfficerDoug Parker will be CEO, and AMR CEO Tom Hortonwill be non-executive chairman, the people have said.

"Horton will receive a performance payment for taking AMR through bankruptcy, with the amount set by the company's creditors committee, a person familiar with that issue said today. His tenure will run until the first joint shareholder meeting or for one year from the closing date, the person said."