American Airlines parent AMR Corp. and US Airways Group Inc. announced that their boards have approved a merger deal that would create the world's largest airline, the Wall Street Journal reported today. The companies said they aim to complete the combination by the third quarter of 2013, an ambitious schedule given the integration issues seen in other airline mergers. AMR's creditors would own 72 percent of the combined airline, and US Airways shareholders the balance. The plan is subject to approval from the judge overseeing AMR's bankruptcy, and also requires clearance from antitrust regulators and other agencies. US Airways Chief Executive Doug Parker will run the combined company as chief executive. AMR CEO Tom Horton will serve as nonexecutive board chairman until next year. The new entity—which will have an implied market value of about $11 billion—will retain the American name and brand remain based in its Fort Worth, Texas, headquarters.
