Fort Worth, TX, United States (4E) – The American Airlines board of directors is reportedly deciding on the company’s plan to merge with U.S. Airways in a meeting on Monday.
The two firms have been in merger talks for months as American looks for a solution to its bankruptcy woes and sources said the meeting will reveal the decision of the Fort Worth-based airline.
Both airlines are not commenting on reports of a likely merger, which will create the largest airline in the U.S.
Under a merged setup, American CEO Thomas Horton is reportedly to be replaced by U.S. Airways CEO Doug Parker. Horton, however, will have a honorary position on the board.
Pro-merger labor unions of American prefer and support a management under Parker.
The combined company reportedly will retain the American Airlines’ name and will be based in Fort Worth instead of U.S. Airways’ headquarters in Phoenix.
Changes in service are not expected to be felt by passengers, but analysts speculate an increase in fare due to lesser competition.
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