American Addresses Merger Plans

In a letter to corporate customers and agency partners, American Airlines offered a progress report Friday on the carrier's proposed merger with US Airways. American's creditors and stakeholders will continue voting on the reorganization plan through this month; US Airways shareholders have already voted to approve the merger. On Aug. 15, a bankruptcy judge will preside over a confirmation hearing, where he will consider the reorganization plan. The U.S. Department of Justice, meanwhile, continues to review the merger proposal. The airlines will remain separate, competing companies until the transaction closes, which is expected to occur in the third quarter of this year. 

To the extent that the two airlines are legally permitted to work on the integration before close, they are focusing on a few items. All customers will receive a single point of contact for the combined American Airlines shortly following the closure of the merger; the airline will respond to requests for proposal as one company following the close, including a combined network and joint pricing terms; and an official codeshare will be put into place as soon as possible following the close, so that customers can combine flights on the two carriers into a single itinerary.