American Airlines, US Airways merger announcement likely in Jan

American Airlines recently indicated that its merger with US Airways is likely to be formalized next year. The airline in a statement said that a formal announcement in this regard could be made in January.

The merger with US Airways would give an edge to American Airlines and help it expand its flights services in a big way. When the merger of American Airlines and US Airways finally takes place, this would lead in the creation of a largest airline company in the United States with up to 1,500 aircrafts in its main line and regional fleets. The newly-formed company would also have more than 120,000 employees.

American Airlines is currently the largest airline operating out of the Los Angeles International Airport. Travel experts have said that the merger between Dallas/Fort Worth-based American Airlines and Tempe-based US Airways would culminate in producing a mega airline with an estimated value of about $8 billion.

US Airways, the fifth largest carrier, has been making a determined push for a merger with American Airlines, the fourth largest carrier, arguing that if this finally comes through it would be just great in better competing against bigger carriers like Delta Air Lines and United Airlines.

Both American Airlines and US Airways are contemplating this merger on the similar lines of Delta Air Lines and United Airlines. Earlier, Delta Air Lines merged with Northwest Airlines in 2009, while United Airlines merged with Continental Airlines in 2011.