US-Air and American Airlines merged.

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US-Air and American Airlines (AA) merged to become the largest carrier worldwide. Both parties see it as a marriage made in heaven. REUTERS is more skeptical and Jak Harty gives a detailed account of the two airlines' history and a more cautious outlook.
The US$ 11 bn merger was speculated about for months and officially announced Feb., 14. With a revenue of more than US$ 40 bn and 1.500 airplanes the new airline will surpass the current number one, Continental Airways, and lift AA out of the bankruptcy it had to file two years ago. Doug Parker from US-Air will take over CEO responsibilities whilst Tom Horton from AA becomes a non executive director of the board. The CEOs quipped about knowing each other from their close cubicles more than twenty years ago. With less than ten routes regarded as redundant the combined network will expand significantly. In addition, the merger is expected to offer about US$ 1 bn cost saving potential in administration, marketing, and technical areas. It was welcomed by everybody from the executive boards down to the labor unions representing staff and workers.
The history of the airline industry is a history of concentration and mergers worldwide. Many of these mergers have been much more complicated than anticipated, more recently in India (Air India, Indian Airways), Europe (Air France, KLM) or the US (Continental, United). The fact that everybody concerned favored this merger raises suspicion since mergers with winners only are rare.