US Airways Group, Inc. shareholders approved the merger agreement with AMR Corporation, the parent company of American Airlines, Inc.
The merger agreement was approved by the affirmative vote of the holders of a majority of the outstanding shares of US Airways stock.
Douglas Parker, chairman and CEO of US Airways, and incoming CEO of the combined company, said, “This approval is a major milestone on our path to completing the merger, and we continue to make excellent progress overall thanks to the focused efforts of the dedicated representatives from both companies. By bringing together two highly complementary networks and generating significant revenue synergies, the new American Airlines will deliver enhanced value for its shareholders. I want to thank our shareholders, our customers and our more than 100,000 dedicated employees for their support throughout this process and look forward to moving forward as an even stronger airline.”
As previously announced, AMR and US Airways agreed to combine to create the new American Airlines. Headquartered in Dallas-Fort Worth, the new American Airlines will become a highly competitive alternative for consumers to other global carriers and is expected to offer more than 6,700 daily flights to 336 destinations in 56 countries, according to a release. The companies continue to expect to complete the combination in the third quarter of 2013.
The day of the vote featured a demonstration by airline contract workers who earn close to minimum wage and are angered by bonuses that are slated to be paid to top executives.
American Airlines is emerging from Chapter 11 bankruptcy proceedings. US Airways had earlier undergone the same process the cut labor costs and increased the number of workers earning around the minimum wage.
Parker and other executives have said American will maintain the US Airways hub in Philadelphia, although some analysts believe some flights could be pared. US Airways is believed to employ hundreds of Delawareans, although the company does not release such information.