The merger would create a company with the size and breadth to compete against United Airlines and Delta Air Lines, which have grown through mergers of their own in recent years and are currently the biggest domestic carriers.
The merger would reduce the number of major US airlines to four: the new American, United, Delta and Southwest.
The companies said merging would create savings of more than USD 1 billion a year.
The new American would have more than 900 planes, 3,200 daily flights and about 95,000 employees, not counting regional affiliates.
It will be slightly bigger than United Airlines by passenger traffic, not counting regional affiliate airlines.
The airline will be headquartered in Dallas-Fort Worth and will maintain a “significant corporate and operational presence in Phoenix,” the statement said.
