The deal is finally done.On Wednesday, the board of directors for both AMR and US Airways approved a definitive agreement to merge the two carriers, sources close to the deal said.An announcement is scheduled for Thursday morning at American Airlines Admirals Club at Dallas-Fort Worth Airport, the sources said.Interactive: Ten questions about the new American AirlinesInteractive: Timeline of a mergerThe merger will create the largest airline in the United States, bumping United Continental from the top spot. The merged company will have combined revenues of $38.7 billion, 1,500 aircraft and close to 100,000 employees. The deal will need to be approved by the bankruptcy judge and by federal regulators before Americans parent company, AMR Corp., can exit from Chapter 11 bankruptcy protection.AMRs board met in New York and voted unanimously to approve the merger. Sources said a bankruptcy filing will be made Thursday regarding the deal.Details of the merger have not been released, although sources said that AMR Chief Executive Tom Horton will become nonexecutive chairman of the new carrier until the first shareholder meeting, which likely be in mid-2014. US Airways Chief Executive Doug Parker will become the chief executive of the merged airline, the sources said.The deal is likely to include a 72 percent equity stake for AMR creditors, while US Airways shareholders will receive 28 percent of the equity in the new company, sources said, adding that AMR common shareholders will get a percentage of AMRs equity portion of the merger.According to the Wall Street Journal, the board of the new company will have 12 directors, with five appointed by Americans creditors, three appointed by American and four appointed by US Airways.US Airways has been pushing for a merger since last spring, winning the support of Americans unions and creditors.Meetings have been going on for weeks as the executives at both companies, along with Americans unsecured creditors committee and an ad hoc bondholder group, tried to reach a deal before the Feb. 15 expiration of a nondisclosure agreement with bondholders.AMR had previously asked the court to extend its deadline until late April to submit a reorganization plan, which suggested that talks could have stretched past this week.With the merger, American will get more market share on the East Coast, where it has lost business in recent years to carriers such as JetBlue. US Airways hubs in Charlotte, N.C., and Philadelphia will also bolster Americans north-south traffic on the East Coast.For US Airways, the merger gives it access to more international routes and partners through the Oneworld alliance. US Airways is currently a member of the Star Alliance but does not have the full benefits; United has better joint ventures with international partners.
Andrea Ahles, 817-390-7631, Twitter: @Sky_Talk