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American Airlines, U.S. Airways to Merge [VIDEO]

American Airlines and US Airways will merge and create the world’s biggest airline. The boards of both companies approved the merger late Wednesday, according to three people close to the situation.

American Airlines planes (Joe Raedle, Getty Images)

The carrier keeps the American Airlines name but will be run by US Airways CEO Doug Parker. American’s CEO, Tom Horton, will become chairman of the new company, these people said. They requested anonymity because the merger negotiations were private.

A formal announcement is expected Thursday morning.

The deal has been in the works since August, when creditors forced American to consider a merger rather than remain independent. American has been restructuring under bankruptcy protection since late 2011.

Together, American and US Airways will be slightly bigger than United Airlines.

(Copyright 2013 by The Associated Press. All Rights Reserved.)

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