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  4.  » American Airlines announces merger with US Airways

American Airlines announces merger with US Airways

On Behalf of | Feb 20, 2013 | Mergers And Acquisitions |

Often a business restructure can help save a floundering New Jersey business. When a business agrees to a merger it can see an influx of capital, consumers and property. These can be just what a business needs to keep going in today’s difficult economy.

Several National airlines’ struggle to stay profitable has been in the news since the start of the recession. These larger companies are struggling as much as smaller businesses are to make enough money to stay afloat. American Airlines, in particular, has been the focus of many stories since it filed for bankruptcy protection in 2011. The company has been struggling and has consistently ranked low in governmental and consumer ratings.

However, the future looks different now for the company. Recently it was announced that American Airlines will merge with US Airways for $11 billion. US Airways is a smaller airline but the companies hope that the merger will allow the two airlines to stay more consistently profitable in the future.

The deal was apparently negotiated over the last several months. It will still need to be approved by federal antitrust regulators, US Airways shareholders and the bankruptcy judge. If all goes as planned, the merger should be completed later this year. The companies have already received support from their labor unions. If the merger is completed, the American Airlines will become the biggest airline in the world.

While the deal may be negotiated and signed, the hard work is not over for these companies. Following creating the deal, businesses that hope to merge still have a lot of work that needs to be followed. Mistakes at this point could be critical in the success of the merger. However, with the right legal guidance, the merger can save companies from a difficult financial situation.

Source: New Jersey Herald, “US Airways lands $11 billion merger with American,” David Koenig and Joshua Freed, Feb. 14, 2013

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