A 787 jet painted in a Delta livery is seen Thursday, Jan. 17, 2013, at Paine Field in Everett, Wash. Federal officials say they are temporarily grounding Boeing's 787 Dreamliners until the risk of possible battery fires is addressed. The Federal Aviation Administration said Wednesday it will issue an emergency safety order requiring U.S. airlines to temporarily cease operating the 787, Boeing's newest and most technologically advanced plane. (AP Photo/Elaine Thompson)
DALLAS (AP) -- 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.
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.