American Airlines, U.S. Airways say plan $11 billion merger

Thu Feb 14, 2013 5:16pm IST

American Airlines flight attendant Karen Stewart walks down from the rear exit of an American Airlines Boeing 737 at DFW International Airport as officials of AMR, American Airlines, Boeing and Airbus announce a major airplane manufacturing deal during a news conference at the airport in Dallas, Texas July 20, 2011. REUTERS/Darrell Byers

American Airlines flight attendant Karen Stewart walks down from the rear exit of an American Airlines Boeing 737 at DFW International Airport as officials of AMR, American Airlines, Boeing and Airbus announce a major airplane manufacturing deal during a news conference at the airport in Dallas, Texas July 20, 2011.

Credit: Reuters/Darrell Byers

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REUTERS - American Airlines and US Airways GroupLCC.N said they plan to merge in a deal that will form the world's biggest air carrier, which will have a combined equity value of $11 billion.

The merger caps a wave of consolidation that has helped put U.S. airlines on more solid financial footing.

The widely expected deal has been more than a year in the making. American, a unit of AMR Corp (AAMRQ.PK), filed for Chapter 11 bankruptcy in November 2011, and US Airways began its pursuit of a merger in early 2012.

(Reporting by Karen Jacobs in Atlanta and Sagarika Jaisinghani in Bangalore)

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