American Airlines-Us Airways Combination

The Merger between US Airways and American Airlines

Announcement particular date: February fourteenth, 2013

Powerful date: TBD

Finance 4010: Financial Supervision

By:

Philip Berkovsky

Mike Hanger

Sam Hillebrand

Derek Mills

1 . US Breathing passages Group, Incorporation., SEC Form 8-K, Processing date: Feb . 13, 2013, http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=196799&fid=8624287 Written Report

On February 14th, 2013, the airline sector was altered forever once US Airways Group Designed and American Airlines, possessed by AMR Corporation, announced that they consented to merge as one company. Both airlines consented to terms to merge in a new business that would keep your name American Airlines, and this company might now become the largest domestic airline inside the U. S. The Merger had been believed about for a time but upon February 14th the two airlines agreed upon a merger that could create a business with a mixed equity of $11 Billion dollars based on the price of US Airways' stock by February 13th, 2013. The 2 companies registered initial paperwork with the Department of Justice on January 31st, 2013. The merger, not expected to become full until the third quarter of 2013, is known as a stock-for-stock contract and each of our report under will summarize the deal much more detail.

Merger Agreement/AMR Bankruptcy

The Merger arrangement lays away what the managing structure will be for the newest American Air carriers. The agreement states that on completion of the merger there will be a board of directors that may be to at first consist of doze members. The present president of American Airlines, Jones Horton, is going to serve as a chairman for one year following the completing the merger. The CEO of US Airways, Doug Parker, will serve as a chairman and turn Chief Executive Officer in the new firm after Mister. Horton's one year term. Following the assignment of those 2 seats, US Airways will have 3 individual members for the board along with AMR designating a couple of more. The last 5 people of the board are to be selected by the Established Committee of Unsecured Lenders who will work on behalf of the Debtors of AMR. The modern combined business will have the headquarters in Fort Worth, Texas, which can be the current area of American Airlines' head office.

The combination concludes that each American Flight companies and ALL OF US Airways consent to certain particular covenants included in the Merger Agreement. US Airways has to hold a vote at a stockholder appointment on the decision whether to simply accept or deny the merger. The Combination Agreement claims that the Panel of Administrators of the firm must suggest an re-homing of the arrangement to the stockholders of the business. American Flight companies (AMR) was also made subject to certain obligations of its own. AMR was said to have to drive for the confirmation of the plan, and it also had to have it is Board of Directors advise the approval in the merger contract to their debtors. Both companies made agreements to continue current operations as usual and agreeing not to solicit substitute business blend transactions to airlines.

The American Airline-US Airways combination was released on the fourteenth of 2013, although the businesses each filed an 8-k with the SEC on the thirteenth. The deal took place with assistance and monetary advising solutions from Rothschild, Barclays, and Millstein & Co. Rothschild served because the economical advisor intended for AMR, however the service fee has not been declared yet (although one may look to 2011 when AMR paid Rothschild $15 million for a talking to fee). Barclays and Millstein & Co both offered as advisors to US Airways and their fee for commission is actually not publically announced yet, both. The two joining companies agreed to a stock-for-stock merger, in which US Breathing passages shareholders should be receive a single share of common share of the fresh airline for every share people Airways common stock held. The aggregate volume of shares in the new company will equate to US Airways controlling 28% of the fresh airline....

Referrals: 1 . ALL OF US Airways Group, Inc., SEC Form 8-K, Filing date: February 13, 2013,

http://services.corporate-ir.net/SEC.Enhanced/SecCapsule.aspx?c=196799&fid=8624287

2 . American Airlines And US Breathing passages To Create A Top Global Transporter -- The New American Flight companies, February 14th, 2013, AMR Public Story,

http://phx.corporate-ir.net/phoenix.zhtml?c=117098&p=irol-IRHome

three or more. Mary Schlangenstein, US Breathing passages Leads AMR Merger to develop Worlds Greatest Airline, March 14th, 2013, http://www.bloomberg.com/news/2013-02-14/us-airways-leads-amr-merger-to-create-largest-airline.html

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5. The Associated Press, Bankruptcy Evaluate Gives Air travel Deal a Go-Ahead, March 27th, 2013, http://www.nytimes.com/2013/03/28/business/american-and-us-airways-merger-clears-bankruptcy-court.html

6th

7. Jeff Keyes, The particular American Airlines-US Airways Combination will Mean to your Frequent Hazard Miles, 03 31st, 2013, http://www.huffingtonpost.com/scott-keyes/what-the-american-airlines-merger-flyer-miles_b_2688076.html

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11. American Airlines Investor Relations, Air carriers at a Glance, March 14th, 2013. PDF Record

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