AMR and US Airways Group Inc, two major airlines, have recently announced about their decision to merge. After the merger, they will become American Airlines. The top management of the two companies is planning that American Airlines will become the industry’s most recognizable brand.
American Airlines is expected to become the world’s biggest airline. Its total market capitalization will reach $11bn.
If to take into account the fact that the new air company has ordered 600 new airplanes, the company’s air fleet will become the industry’s most efficient and modern fleet, with a solid financial base.
The holders of US Airways’ stock will get 28% of the united stock. The rest (72%) will be given to AMR shareholders.
The chart below, courtesy of , reflects the current state of affairs in the market of LCC:
