THE FOREPLAY IS OVER; AMERICAN AIRLINES AND US AIRWAYS TIE THE FINANCIAL KNOT

American Airlines and US Airways have consummated their stormy merger prenuptials, and we are expecting Justice Department approval of a deal worth an estimated $11 billion to be finalized this Fall. The new carrier will be known as American Airlines with headquarters remaining in Ft. Worth.AA US AIR MERGER 2 Planes CX

After all is said and done, the stockholders in US Airways will end up owning just under 30% of the new airline. It will be run by US Airs CEO Doug Parker. When the deal is approved, and it will be, Parker will head up the largest airline in the world.

We have had a number of questions regarding mileage issues and accrued points. At this point, it looks as though US Airways points will be absorbed into the American Frequent Flyer Program. In the past, when mergers have occurred, this has worked out to benefit customers of the majority stake airline, not the smaller member of the merger. But we are not currently recommending that US Airways Frequent Flyer’s cash in their points.  As always, we highly recommend Churchill & Turen guests to use one of the credit cards that allows the cardholder to deposit miles in any account of their choosing. At the present time, the Starwood American Express Card is, in our opinion, still  the single best credit card for those whose primary purpose is accumulation and the ability to use airline miles.

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