US Airways closes in on deal with AMR to form largest airline
After merger failures, carrier hopes to become world's biggest in tie-up with American Airlines
US Airways chief executive officer Doug Parker, after three failed attempts at major mergers, is closing in on a deal to combine with AMR's American Airlines (AA) and form the world's biggest carrier.
Parker, 51, has applied lessons from his previous efforts, shifting tactics in pursuing the bankrupt AMR.
The two companies are working on final details and their boards may vote on the deal later this week, people familiar with the matter have said. Parker would lead the combined company, the people said.
The deal would mark a career achievement for Parker, the longest-serving CEO among large US airlines. It would also complete the industry consolidation that he began in 2005 when his America West Holdings merged with US Airways, reduce the number of full-service US carriers to just three, and bolster airlines' ability to raise fares.
"He learns from his past mistakes," Gordon Bethune, the former CEO of Continental Airlines, said. "He's done this the right way, and it's showing."
He learns from his past mistakes ... He's done this the right way, and it's showing
US Airways began its pursuit in January 2012, less than two months after Texas-based AMR sought court protection. The airlines agreed last week on post-merger leadership and the division of equity, people familiar with the matter have said.