American Airlines | Tulsa World

U.S. Airways CEO Doug Parker, left, and American Airlines CEO Tom Horton listen to a question during a news conference at DFW International Airport on Feb. 14, in Grapevine, Texas.

On Feb. 14, American Airlines and U.S. Airways leaders officially announced a merger to create the nation’s largest carrier and give some 7,000 employees in Tulsa new leadership after more than a year of uncertainty and bankruptcy proceedings.

The boards of directors for American parent AMR Corp. and U.S. Airways approved the merger after hammering out a deal that gives executive control to U.S. Airways Doug Parker and gives most of the equity in the company to American Airlines’ creditors.

“The combined airline will have the scale, breadth and capabilities to compete more effectively and profitably in the global marketplace,” Parker said in a statement released Thursday morning. “Our combined network will provide a significantly more attractive offering to customers, ensuring that we are always able to take them where they want to travel, when they want to go."

Parker began pursuing a merger with American in January 2012, less than two months after AMR's bankruptcy filing on Nov. 29, 2011.

The merger would create the world’s largest airline valued at almost $13.1 billion, according to Bloomberg. Currently, American is the No. 3 carrier based on passenger traffic with US Airways No. 5.

Talks of a merger have taken place for months after AMR Corp. filed for Chapter 11 bankruptcy protection in November 2011.

Company fact sheets
American Airlines
Headquarters: Fort Worth
CEO: Thomas Horton
Industry rank: Third largest
Total daily flights: 3,500 daily departures.
Total destinations: 260 cities and airports.
Total countries/territories served: 50.
Total employees: 61,457, including 6,500 in Tulsa.
Hub operations: Dallas/Fort Worth, Chicago, New York, Miami, Los Angeles.

US Airways
Headquarters: Tempe, Ariz.
CEO: Doug Parker
Industry rank: Fifth largest
Total daily flights: 3,028 daily departures.
Total destinations: 198.
Total countries/territories served: 28.
Total employees: 32,213.
Hub operations: Charlotte, N.C.; Philadelphia; Phoenix.

What a merger may mean for travelers
It would be several months - if not years - before customers see any real impact. Passengers with existing tickets on American or US Airways - and members of both frequent-flier programs - shouldn't fret. No changes will come anytime soon.

Airfare: The merger would give a combined American and US Airways the ability to increase fares. United, Delta and Southwest would be likely to follow.

Frequent-flier miles: Your miles would be safe. Eventually, the two airlines would merge the miles into one program. Before then, elite status from one airline would likely be honored on the other, and passengers would be able to transfer miles from one program to another. That puts the occasional traveler closer to rewards.

The merged carrier would continue American's participation in the OneWorld alliance, which was founded by American, British Airways, Cathay Pacific and Qantas. US Airways would leave the Star Alliance, which includes rival United Airlines, Lufthansa, Air Canada and 24 other airlines. Alliances allow passengers to earn and redeem miles on partner airlines.

Destinations: A key reason for merging is to link both airlines' networks, creating a system on par with Delta Air Lines and United Airlines, part of United Continental Holdings Inc. The combined airline would become more attractive to companies seeking to fly employees around the globe with few connections.

US Airways passengers would gain access to American's international destinations, particularly London and Latin America. American's passengers would be able to better connect to smaller U.S. cities that US Airways serves. The combined carrier would have considerable presence in New York, Philadelphia, Washington, Charlotte, N.C., Miami, Chicago, Dallas, Phoenix and Los Angeles.

Contact the reporter
KYLE ARNOLD, 918-581-8380 or kyle.arnold@tulsaworld.com

Headlines

American Airlines' Tulsa base could benefit from merger 2/16/2013

The merger between American Airlines and US Airways might actually be an opportunity for more work at the 6,200-employee Tulsa maintenance base, says Mike Neal, president and CEO of the Tulsa Regional Chamber.

Merger still leaves plenty up in the air 2/16/2013

Much was settled this week for the air transportation industry and workers when American Airlines and US Airways agreed to merge and create the world’s largest carrier.

American Airlines CEO Tom Horton to land $20 million severance 2/16/2013

Tom Horton won't get to lead the new American Airlines after it merges with US Airways, but he'll get a going-away prize of nearly $20 million.

Community leaders rally behind American Airlines merger 2/15/2013

Reminiscent of a meeting held 15 months ago just after American Airlines filed for bankruptcy, Tulsa business and government leaders gathered Friday to express support again, this time for company’s merger with US Airways.

Airline merger impact won't be apparent to travelers immediately 2/15/2013

While American Airlines and US Airways announced plans to merge Thursday, it will be several months - if not years - before passengers see any significant impact.

American-US Airways merger greeted optimistically by Tulsa civic, business leaders 2/15/2013

A deal to combine American Airlines and US Airways finally provided optimism and clarity to a community that just more than a year ago faced the possibility of losing its largest employer and nearly 7,000 jobs.

American Airlines merger deal provides a bit of clarity 2/15/2013

American Airlines' 6,500 employees in Tulsa are expected to have a new boss soon and maybe even new hope after the company announced it had reached a merger agreement with US Airways.

American Airlines, US Airways officially announce merger plan 2/14/2013

The boards of US Airways Group Inc. and bankrupt AMR Corp. late Wednesday each voted to approve an $11 billion merger that would create the world's largest airline.

What an American-US Airways merger means for you 2/14/2013

While American Airlines and US Airways announced plans to merge Thursday, it will be several months — if not years — before passengers see any significant impact.

AMR, US Airways reportedly vote to approve merger 2/13/2013

According to the Wall Street Journal's sources, the deal will be officially announced early Thursday morning. The creditors of AMR Corp. and American Airlines would own 72 percent of the combined airline, and US Airways shareholders would own 28 percent.

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AMR - US Airways merger

Value of deal: $11 billion

Combined revenues: $38.7 billion

Total employees: 100,000

Ownership: 72 percent by AMR creditors, 28 percent by US Airways

Board makeup: 12 directors, with five appointed by American's creditors, three appointed by American and four appointed by US Airways

Sources: AMR, US Airways, analysts.

Reactions

"While the American Airlines restructuring process was difficult at times, it ultimately proved successful as thousands of high-paying jobs were saved in our community. Across the country, today’s corporations are making decisions based on economies of scale. We are confident US Airway’s decision to merge with American Airlines, a longstanding corporate partner in Tulsa, will ultimately keep thousands of high-paying aerospace and manufacturing jobs here, in our community. The city of Tulsa is grateful that American Airlines and US Airways are committed to Tulsa and that our future in the aerospace/aviation industry looks very bright."

Mike Neal
President of the Tulsa Regional Chamber, said.

Timeline

January 1946: New York-based American Airlines establishes its Tulsa maintenance base with 50 employees in four barn-like World War II-era hangars formerly occupied by Douglas Aircraft.

November 1946: American's Tulsa base payroll jumps to 700 workers.

August 1951: American hires its 3,000th employee at the Tulsa base.

January 1953: Work begins on a $2 million remodeling of the maintenance facility.

October 1955: American adds 700 jobs at the Tulsa base, increasing total employment to 3,500 people.

January 1956: On the 10th anniversary of the Tulsa base opening, 3,600 workers are employed.

June 1959: -- American dedicates the Jet Maintenance & Engineering Center in Tulsa. "Jet" in the name later was dropped when airlines went to all-jet fleets.

June 1962: American installs the first computerized airline ticket reservation system.

November 1966: An aviation era closes when American performs its last main base overhaul on a DC7 piston-powered commercial aircraft.

June 1969: American announces a $40 million expansion of the Tulsa Maintenance & Engineering Center.

September 1970: American announces the relocation of its Sabre computer reservation system from Briarcliff, N.Y., to Tulsa, bringing the company's investment in Tulsa to $118 million.

July 1971: American's $13 million 106,000-square-foot computer center, Sabre II, opens in Tulsa.

November 1971: -- The Maintenance & Engineering Center celebrates its 25th anniversary.

January 1972: The local center's work force totals 5,100.

April 1976: On the 30th anniversary of the Tulsa base, workforce payroll tops $100 million a year.

November 1978: Dedication ceremonies are held for a 263,000-square-foot addition to the Sabre Computer Center at Tulsa International Airport.

June 1979: American moves its corporate headquarters from New York City to Dallas-Fort Worth International Airport.

May 1982: AMR Corp., the new holding company of American Airlines Inc., is formed.

November 1986: American announces a $154 million expansion and renovation of the Tulsa Maintenance & Engineering Center.

June 1989: American announces a $150 million expansion of the Tulsa base, which will create 1,600 jobs.

March 1991: Appearing at the company's President's Conference with employees at the Mabee Center, American Airlines President Robert Crandall says the U.S. airline industry is in "dreadful" condition, suffering from a doubling of fuel prices, fare wars and a slump in travel brought on by the Persian Gulf War.

March 2001: Electronic Data Systems Corp. acquires Sabre's airline infrastructure outsourcing business and its internal information technology infrastructure assets. About 1,400 Sabre employees in Tulsa accept jobs with EDS.

January 2003: AMR Corp. reports a $3.5 billion loss for 2002, the largest annual loss in airline history.

February 2003: Citing unsustainable losses of more than $5 million a day, American asks its labor leaders and employees for $1.8 billion in annual savings through changes in wages, work rules and benefits.

May 2003: American implements significant cuts, which include laying off 7,000 workers companywide, including 718 in Tulsa, where the airline employed about 10,000. The company also says it is reviewing its three maintenance bases -- at Tulsa, Fort Worth and Kansas City, Mo. -- for possible cutbacks.

September 2003: After the passage of the Vision 2025 improvement and incentive package, which includes $22.3 million in capital improvements for American's Tulsa maintenance center, the airline announces it will add work in Tulsa and not close the base.

May 2007: Then-Gov. Brad Henry approved appropriating $10 million from the state's Opportunity Fund, which contains surplus state money that is used to create jobs, for new facilities for American and Spirit AeroSystems.

Mayor Kathy Taylor paired $5.7 million of the state funds with $4.3 million in local funds to build American the 81,400-square-foot widebody Hangar 80 at TulsaInternationalAirport. The remainder of the state money, $4.3 million, was used to rehabilitate an aircraft building for Spirit.

The state and local money contributed for American's new hangar was in addition to the $22.3 million in Vision 2025 funding provided to American by county taxpayers in 2003.

The Vision 2025 money was used by the company to purchase tooling and test equipment, including a $2 million avionics testing device.

July 2011: More than 200 Tulsa-based American Airlines workers whom the company is considering moving to the Dallas-Fort Worth area say they are opposed to relocating and ask Tulsans' and elected officials' help in making their case. The workers, members of Local 514 of the Transport Workers Union, include 230 maintenance control technician positions and staff. "The relocation of these jobs would mean a $14.6 million loss of wages currently circulating in Tulsa's economy and tax base," said Sam Cirri, president of TWU Local 514.

Nov. 29, 2011: Fort Worth, Texas-based AMR Corp. and AMR Eagle Holding Corp., the parent companies of American Airlines and its regional affiliate American Eagle, file for Chapter 11 bankruptcy protection. They filed voluntary petitions to reorganize, saying it's in the best interest of the companies and its shareholders.

Feb. 1, 2012: American announces it will cut 13,000 jobs nationwide, including 2,100 in Tulsa, or 30.9 percent of jobs here.

Feb. 14, 2013: American Airlines and U.S. Airways leaders officially announce a merger to create the nation’s largest carrier and give some 7,000 employees in Tulsa new leadership after more than a year of uncertainty and bankruptcy proceedings.