American Airlines Group Inc (NASDAQ:AAL) And US Airways Group Inc (NYSE:LCC) To Take Big Step In Merger

After a lot of hurdles, the Federal Aviation Administration has decided to award a single operating certificate to US Airways Group Inc (NYSE:LCC) and American Airlines Group Inc (NASDAQ:AAL). As per the reports, this decision is been considered as a stepping stone towards completing the merger transaction between these two companies. If the transaction is executed successfully, then American Airlines will turn out to be the largest joint carrier in the world.

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American Airlines and US Airways announced this merger in 2014. The FAA has approved the transaction within a year’s time, which means that all the flights by both of these companies will now be named after American Airlines. The decision of FAA has come right after US Airways, and American Airlines announced the clubbing of their royalty rewards under the Advantage program of American Airlines last week.

Both the airlines have signed collective bargaining agreements for duration of next five years with their flight attendants and pilots to ensure that things remain after both of them start running operations as one entity. There are a lot of steps pending as of now to complete the merger transaction. Both the companies have to integrate their reservation systems into a common platform. Apart from this, all the employee contracts are to be transferred to American Airlines’ name.

Both the procedures are supposed to take some time; hence, this duration will be used in other tasks. Reports claim that US Airways has started painting its planes with American Airlines’ logo and colors. The merger is expected to be closed by the end of 2015, which means that within a few months time, American Airlines Group Inc (NASDAQ:AAL) will become the largest carrier in the world. It will have more than 1,000 planes and 110,000 employees, who will work round the clock to manage 6,700 daily flights.

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Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

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