US Airways and American Airlines to merge

<p>US Airways and American Airlines could merge to make one of the world’s biggest carriers.</p>

US Airways shares have soared on the New York Stock Exchange as the carrier is set to merge with American Airlines.

The collaboration would form one of the biggest airlines in the world and reports suggest both organisations' boards met yesterday (February 13th) to approve the deal, with further information expected to be released today.

American Airlines is set to benefit from the deal, as the merger would bring it closer in value to rival Delta Airlines with an estimated market value of $11 billion (£7 billion).

However, the lion's share (72 per cent) of the company will be owned by American Airlines' bankruptcy creditors, after the carrier filed for bankruptcy protection over a year ago.

US Airways is the smaller party in the deal, but investors have been buoyed by news of the acquisition, because at close of play on Wall Street last night, shares in the carrier jumped by 2.7 per cent to $14.66 per unit.

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