The boards of directors at US Airways and American Airlines parent AMR Corp. separately agreed to merge on Wednesday, according to published reports, and the two companies plan to formally announce the merger on Thursday.
According to reports, US Airways CEO Doug Parker would become CEO of the combined airline, which would be the world's largest, edging out United. The combined carrier would operate as American Airlines.
American CEO Tom Horton reportedly would become the combined airline's chairman.
A merger would have to be approved by the bankruptcy court overseeing American Airlines' Chapter 11 reorganization and US Airways' shareholders. The Department of Justice's Antitrust Division also needs to review the deal.
Parker was the CEO of America West when that airline merged with larger US Airways in 2005. Since that merger occurred and Parker took over as US Airways CEO, he has sought another merger partner to become amongst the largest U.S. airlines.
An attempt to combine with Delta via hostile takeover failed in 2006. Two attempts to merge with United failed in 2008 and 2010.
An American-US Airways merger would appear to be the capper on a five-year period of major consolidation in the U.S. airline industry.
Delta and Northwest combined in 2008, becoming the world's largest airline at the time. United and Continental then became the world's largest carrier when they merged in 2010.
The merger of Southwest and AirTran was approved in 2011.