The combined carrier will be called American Airlines and be based in Fort Worth however Phoenix will remain a corporate and operational hub.

Doug Parker email: Today we announced that American Airlines and US Airways will combine to create a premier global carrier. Operating under the iconic American Airlines name, one of the most recognized brands in the world, the combined airline will have a robust global network, a strong financial foundation and one of the most modern and efficient fleets in the industry. We are excited about what the combination of our two great airlines means for our valued customers.

The combined company will retain the iconic American Airlines brand name, and will provide you with more choices and better service throughout the world. The combined company will be headquartered in Dallas-Fort Worth and will maintain a significant corporate, operational and hub presence in Phoenix.

(CBS/AP)

DALLAS – American Airlines’ parent company, AMR, filed for Chapter 11 bankruptcy this morning.

American lost $868 million during the first nine months of this year, and was the only major U.S. airline to lose money last year.

AMR Corp. and AMR Eagle Holding Corp. says they filed voluntary petitions to reorganize.

It says the move is in the best interest of both companies and its shareholders.

American has been unable to reach a new cost-saving contract with its pilots. It has been trying to upgrade its aging fleet of planes, and has not merged with another carrier, like many of its competitors… [read more]