American Airlines will merge with US Airways and the deal will be announced on Thursday.
The American Airlines name will remain but the CEO of US Airways will be the head of the newly merged company.
This deal has been approved by both boards and has been in the works since 2011.
The airline industry has always been a tough industry for its players. Mergers are the norm as airlines try to stay afloat and compete with one another.
I believe that mergers end up translating into higher prices for travelers. With fewer players in the marketplace there is less of an incentive for companies to offer lower rates.
The new airline will be the second biggest in North America, slightly larger than United Airlines.
Article source: Chicago Sun-Times.