US Airways shareholders approve on American merger
NEW YORK — US Airways shareholders overwhelmingly approved a proposed merger with American Airlines, bringing the companies closer to building the world's biggest airline.
The main hurdle now is a review by antitrust regulators at the Department of Justice. Concerns have been raised about the merger's impact on airfares and the combined airline's potential dominance at Washington's Reagan National Airport.
The man who would lead the combined company, US Airways CEO Doug Parker, was once again adamant Friday that the combined airline should not be forced to give up any takeoff and landing slots at Reagan National, where it will be by far the biggest carrier.
At a shareholder meeting on Friday in New York — likely the last for US Airways Group Inc. — 132.3 million shares were voted in favor of the merger and about 258,000 against it, the company said. The US Airways shareholders will get 28 percent of the new company, with the rest going to creditors, employees and shareholders of American Airlines parent AMR Corp.
AMR has been operating under bankruptcy protection since November 2011, and its creditors are voting through July 29 on a reorganization plan that includes the merger. They are widely expected to favor it, and a federal bankruptcy judge in New York could confirm the plan at an Aug. 15 hearing.
At Thursday's closing price for US Airways shares, the all-stock deal would be worth roughly $12.8 billion. Since American filed for bankruptcy, US Airways shares have nearly quadrupled to $17.37, as investors bet on a merger of the two airlines.
European regulators are expected to announce a decision on the merger this month. The Justice Department has not commented on its review, but some members of Congress have questioned whether US Airways and American would be too strong at Reagan airport. Together they would control about two-thirds of the takeoff and landing slots at the close-in airport.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Iron ore price decline hurts U.S. Steel’s cost advantage over rivals
- CEOs in 10 big mergers to get $430M: Equilar study
- Woman on dating site looks too good to be true: How to vet that pic
- 153-year-old Venango well pumps out oil, history
- U.S. Steel reorganizes operating units
- Toyota to begin selling 1st fuel cell vehicle, Mirai, in December
- Business Council for Peace program works to export profits, peace
- Evans City-based Advanced Polymer Technology stays grounded
- 9 things for shoppers to watch this holiday season
- Small retailers at intersection of social networks, foot traffic
- Worker killed in Ohio natural gas well fire