Update: 7:50 p.m. – CNN is reporting that the Board of Directors for both companies have agreed to the merger proposed.
It is a new day in DFW and soon in skies, as American Airlines is expected to finally announce the company’s merger with USAirways following approval by their respective Board of Directors tonight. The official announcement is not expected until Thursday, but several news outlets are reporting it is a done deal.
ABC News reports:
“Any deal is still subject to approval of the bankruptcy judge overseeing American Airline’s bankruptcy, as well as the anti-trust division of the Department of Justice. Both are expected to sign off on the agreement.
This would be the third mega airline merger in the past five years. Delta and Northwest announced a merger in 2008, followed by United and Continental in 2010. The industry consolidation would leave four major carriers operating in the U.S., American, Delta, United, and low-coast carrier Southwest.”
American Airlines has deep ties to the Dallas Forth Worth community and it is unclear how the merger will impact jobs or airfares. It is not believed to have a great impact initially, because working out all the details can take up to a year. Also, American recently agreed to terms with their various unions, likely with the merger in mind.
As far as airfares go, having less players could lead to higher prices but until the dust settles, no one knows for sure.
