American airlines avoids bankruptcy

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American Airlines and US Airways will announce a merger Thursday, potentially creating the world’s largest air carrier in the world, according to the Washington Post.

Pending approval by both airlines, the merger would rescue American Airlines from bankruptcy.

The partnership will give the new super airline the ability to compete with Delta Airlines and United Airlines, both of which have gone through recent mergers.

Along with Southwest Airlines, the foursome will dominate passenger travel in the United States with 86 percent of domestic air travel.

“I think we are seeing a dynamic already where the airlines are passing on the increased cost of fuel and labor to the consumer,” said William S. Swelbar, a researcher at the MIT International Center for Air Transportation, to The Washington Post.

He does not believe this merger will significantly impact air fares.

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