July 13--US Airways shareholders overwhelmingly approved the proposed merger with American Airlines on Friday.
Of 132.8 million shares voted, 132.3 million were cast in favor of the $11 billion merger, and 257,757 against, the company said. A further 256,523 were held by shareholders who abstained.
"This approval is a major milestone on our path to completing the merger, and we continue to make excellent progress overall thanks to the focused efforts of the dedicated representatives from both companies," US Airways CEO Doug Parker said.
The next step will be securing regulatory approval from the U.S. Justice Department which is expected to rule before the end of September on antitrust concerns.
Parker has pledged to maintain all nine American and US Airways hubs, including Philadelphia.
One Philadelphia shareholder, Jim White, attending the meeting thanked Parker for keeping Philadelphia as a hub.
"You need not thank us for our commitment to Philadelphia," Parker said. "We do well there, and we love the city. We love being the largest carrier there. Our hub does well for US Airways, will do even better as part of a larger network at American."
"This merger will be great for Philadelphia, for the state of Pennsylvania, actually for everywhere we serve," Parker said. "It will just make that hub stronger as part of a stronger American Airlines. We are looking forward to a continued relationship with the city."
Outside the meeting in New York City, a small group of community and labor advocates representing low-wage airport workers protested. They demanded better pay for nonunion employees of private companies that have low-bid contracts with airlines to provide services by skycaps, wheelchair attendants, baggage handlers and aircraft cabin cleaners. Several airport workers spoke at the meeting.
The combined airline, which will be called American and be based in Dallas-Fort Worth, Texas, will operate a fleet of 1,215 aircraft and have more than 100,000 employees, annual revenue of nearly $40 billion, and 6,700 flights to 336 destinations in 56 countries.
The merger is an $11 billion, all-stock transaction, with 72 percent of the combined airline owned by American shareholders and 28 percent by US Airways shareholders.
Contact Linda Loyd at 215-854-2831 or [email protected].
Copyright 2013 - The Philadelphia Inquirer
