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The combination will boost American’s service to Europe and the Latin America-Caribbean market. But some analysts noted that the new American will still be weak on routes to Asia.
"Without a major Pacific presence (just a mere five destinations and eight routes), American doesn’t come close to either Delta or United’s presence in the market," Helane Becker, airlines analyst for Dahlman Rose & Co., wrote Thursday in a note to clients.
The new board of directors will have 12 members: Three from American, including Horton; four from US Airways, including Parker; and five appointed by American’s creditors.
AMR shareholders are poised to get a 3.5 percent stake in the new airline. That’s unusual because stockholders typically get wiped out in a Chapter 11 proceeding.
Horton said AMR’s bankruptcy creditors might be repaid in full. He said his company cut costs, reduced debt and moved ahead with orders for new planes during the bankruptcy process, increasing AMR’s value to US Airways.
That, he said, "allowed us to make a deal with US Air that was on the right terms for American and our people."
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