AP Airlines Writer
DALLAS (AP) - American Airlines and US Airways say they're merging in a deal they value at $11 billion, creating the world's biggest airline. The airlines announced their deal Thursday.
The combined carrier will be called American Airlines, but run by US Airways CEO Doug Parker. The boards of both companies approved the merger late Wednesday.
It reduces the number of major U.S. airlines to four.
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.
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