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American Airlines Merges with US Airways, Becomes World’s Largest

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American Airlines and US Airways will merge and create the world’s biggest airline.

The boards of both companies approved the deal late Wednesday. The carrier will keep the American Airlines name but will be run by US Airways CEO Doug Parker.

American Airlines CEO, Tom Horton, will serve as chairman of the new company until mid-2014.

CEO and co-founder of farecompare.com, Rick Seaney discussed the merger.

“This merger probably won’t officially occur until they fly as one airline for at least two years,” he said. “I don’t see anything different happening in the short term. We are going to see fewer sales and more limited sales with these airline mergers and so-called low-cost airlines ticket price are coming up. You’re not going to see this big gap in pricing.”

The merger caps a turbulent period of bankruptcies and consolidation that will leave the U.S. airline industry dominated by four big carriers: American, United, Delta and Southwest. Together they would control almost 75 percent of U.S. airline traffic.

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