As reported on Thursday, Feb. 14, 2013, American Airlines and US Airways publicly announced an agreement to merge the two airlines. CWT clients should note, however, that the agreement is subject to government approvals as well as regulatory clearances and closing conditions, and that it is not expected to close until the third quarter of this year.

Remember that the carriers have stated they will they will remain independent airlines until the merger closes. During this period, both airlines will be planning for their integration long-term. A message from the carriers stated the combined airline would create “a premier global carrier.”

Until the specific details of the merger agreement are provided, the implications of this announcement are speculative at best. That said, CWT recognizes price and service are our clients’ primary concerns in the face of potential industry consolidation. As with any approved merger, the outcome will likely present both challenges and opportunities for our customers.

Once the merger is complete, the combined airline will fly under the American Airlines brand.

CWT has a strong, long-standing partnership with both carriers, and we expect those relationships to continue as they navigate the complexities of the merger. CWT is committed to working closely with each carrier to help ensure we represent our clients’ needs.

CWT will continue to monitor this situation and any subsequent announcements. We will provide additional information regarding impact to CWT clients as more details become available. CWT clients and travelers with specific questions should refer to the Frequently Asked Questions (FAQs) portion of the American Airlines and US Airways websites.

If you have immediate questions or concerns, please contact your CWT representative.

Meanwhile, we recognize there has been plenty of speculation in the media about the effects of this announcement. Here are some links to news coverage, which are provided for your consideration and do not reflect the official views of CWT (links will open in a new window):

National Public Radio — Airline Mega-Mergers: ‘Good, Bad And Ugly’

USA TODAY — Will American/US Airways cultures clash or commingle?

Wall Street Journal, The Middle Seat — Deal Offers Air Travelers Hope for Better Service

Safe Travels!