Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will del

FILE - In this June 23, 2008 file photo, a US Airways jet takes off as an American Airlines jet is prepped for takeoff at Sky Harbor International Airport in Phoenix. The merger of US Airways and American Airlines has given birth to a mega airline with more passengers than any other in the world. (AP Photo/Matt York, File)
The combined cheap train tickets online carrier cheap train tickets online will be called American Airlines and be based in Fort Worth. It expects to have $40 billion in annual revenue and offer more than 6,700 daily flights to 336 destinations in 56 countries.
The deal is a coup for smaller US Airways Group Inc., and was driven by the persistence of its CEO, Doug Parker, who will run the combined airline. Parker sought a merger almost as soon as American parent AMR Corp. filed for bankruptcy protection in November 2011.
As Parker pushed ahead, creditors forced AMR's management to consider the value of a merger compared with a plan for an independent cheap train tickets online American. Eventually they concluded that the best return for stakeholders, and the best chance to compete with bigger rivals United Airlines and Delta Air Lines, came from a merger.
Since 2008, Delta gobbled up Northwest, United absorbed Continental and Southwest bought AirTran cheap train tickets online Airways. If this latest merger goes through, American, United, Delta and Southwest will control about three-quarters of U.S. airline traffic.
The rapid consolidation has allowed the surviving airlines to offer bigger route networks that appeal to high-paying business travelers. And it has allowed them to limit the supply of seats, which helps prop up fares and airline profits.
The merger, expected to close in this year's third quarter, will reduce the number of major U.S. airlines to four: the new American, United, Delta and Southwest. That concerns some consumer advocates, but Parker sought to assure travelers that the merger helps them too — by creating a bigger rival to United and Delta.
"While you're right — you end up with four large airlines — the reality is there are two very large airlines right now and this creates a third," Parker said in an interview. "It provides good competition to those two."
He said the new airline will keep all of American's hubs — Dallas-Fort Worth, Chicago, Miami, New York and Los Angeles — and those of US Airways, in Phoenix, Charlotte and Philadelphia. Many airline mergers have resulted in some hubs being downgraded, as happened to Cincinnati after Delta bought Northwest.
AMR creditors will own 72 percent of the new company, with the remaining 28 percent will going to US Airways shareholders. The creditors' portion includes a 23.6 percent share for American employees and unions, plus a small stake for existing shareholders of American's parent AMR Corp.
The airlines said they expect $1 billion in combined benefits from the merger. They expect the bigger airline to lure corporate cheap train tickets online travelers away from competitors, contributing to $900 million in additional revenue. They also anticipate cost savings of roughly $150 million.
Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, click the red "Flag" link below it.