Subscribe Now

travelers today

Home » News

US Airways Merger with American Airlines Update: US Airways Boards To Meet This Week [VIDEO]

Travelers Today       By    Antranig Dereyan

Updated: Feb 12, 2013 11:46 AM EST

Text Size: A A A

According to multiple sources quoting multiple unnamed sources, the merger deal between American Airlines and US Airways is heating up.

The latest comes from The Wall Street Journal. In a report that cites "people close to the discussions," the newspaper says directors of both American and US Airways plan to meet tomorrow (Feb. 13) to consider a merger.

In its report, the Wall Street Journal writes:

"The two companies could disclose a deal later that day or on Thursday, the people said. Nearly all the significant points of the deal have been finalized, they said.

Some outstanding issues remained, which could delay the scheduled board meetings and the announcement of the merger by a day or perhaps into next week, the people cautioned."

The Associated Press reports that no matter when or if this merger deal goes through; it will create the biggest airline by passenger traffic. Though United would still be bigger if its regional United Express affiliates are counted. United, of course, is fresh off its merger with Continental that made it the world's biggest. United surpassed Delta, which itself moved to No. 1 after its merger with Northwest.

With a merger like this, the potential of monopoly comes into play as with fewer options out there, the US Airways/American Airlines conglomerate could charge colossal rates and fees that passengers would have no choice but the pay because the only other option would be Delta/Northwest, United/Continental and/or other limited-service airlines with limited destinations and/or discount airlines.

If a monoply occurs (whether it be regionally or nationally) US Airways/American Airlines could force the other airlines out-of-business and buy them on the cheap.

It is for this reason that even with an announcement later this week or in the up-coming weeks that a deal has been reached, the merger itself would not become official until an extensive review by the Federal Aviation Administration (FAA).

© 2016 Traverlers Today, All rights reserved. Do not reproduce without permission.
Join Our Conversation

Travel Tips

Google Maps Returns To Apple's iPhone

7 Travel Apps You Need For Your Summer Vacation

Are you travelling this summer? Here are 7 travel apps that can help you have a fun and stress-free vacation.

Bryan Hopping Emigrant Wilderness CA USA.jpg

Alone Not Lonely: 9 Expert Tips On Solo Traveling For The First Time

Thinking of traveling alone? Read this article.

Piggy Bank Savings

Top 10 Most Expensive Cities To Visit In 2016

Visiting these countries would require you to shatter many piggy banks.

Steamboat Natchez

New Orleans Offers 7 Great Activities For Families: Find Out Here

There is no shortage of activities in the wonderful city of New Orleans.

Caribbean

Island Hopping In The Caribbean: How To Get The Best Tours

Island trips to the Carribbean should not be too hard even for those who were just doing it for the first time. In other words, even if travellers are scared of going on unfamiliar trips for the first time, they can still go on these trips, thanks to helpful resources such as guides and maps.

Subscribe to our newsletter

Receive the latest travel news, reviews, and more..

Want more Travel?

Most Popular

Children TV

Time Travel And Other TV Trends To Expect This 2016

The three trends that are seen in TV this year which includes time travel, blast from the past and adaptations.

Airport

TSA Security Head Fired Over Long Lines In The Airport?

Kelly Hoggan, the agency's assistant administrator for security operations, has been removed from his position, according to an internal memo by TSA Administrator Peter Neffenger obtained by NBC News.

Swimming pool

US: 1 in 8 Swimming Pools Closed for Health Violations, According To Health Violations

One in eight swimming pools in most populated states were allegedly been shut down due to inspection of filthy and suspected existing harmful water around, as announced by health authorities in the United States on Thursday.

travelers today

© 2016 IQADNET LLC All rights reserved.

Subscribe to our newsletter
Real Time Analytics