American Airlines and US Airways will merge and create the world’s biggest airline.
The boards of both companies approved the merger late Wednesday, according to reports carried by US media outlets.
The carrier keeps the American Airlines name but will be run by US Airways CEO Doug Parker.
American’s CEO, Tom Horton, will become chairman of the new company, the reports claimed.
A formal announcement is expected.
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.
AMR’s bankruptcy creditors will own 72% of the combined airline, which will be based in Fort Worth, Texas. US Airways shareholders will own the rest.
