Get the full issue of Arrivals below.

We’re pleased to report the latest on our progress in planning the integration of American Airlines and US Airways. Ours is a big, complex task guided by a team of committed professionals from both airlines who have joined forces to create not just the biggest, but the best airline in the world.

Consider the numbers: Our integration will include more than 110,000 people serving 187 million customers a year flying to and from 336 destinations on more than 1,500 planes. Boil that down, and we will need to align thousands of systems, applications, procedures and policies as we implement the merger. And we want to get every one of them right.

The Integration Management Office (IMO) – the “nerve center” of our integration effort – has been firing on all cylinders since we last provided an update. As we have previously shared, there are 29 teams planning the integration of our commercial, customer-facing, operations, and corporate and staff functions for our two airlines. We’ve also created several cross-functional taskforces that will work on specific objectives. One, for example, is preparing a joint crisis response plan, while another is already focusing on obtaining a single operating certificate for the combined carrier.

This week several teams – those who have tasks that must be accomplished leading up to legal close or that otherwise will enable us to capture and deliver value to customers and employees – gathered in Dallas/Fort Worth to discuss and align objectives, set milestones, and properly sequence activities. Ultimately, we are working to create an airline that keeps our current customers happy, brings in new customers, provides a great place to work, and achieves the financial value that will make it all possible.

We know this planning process raises many more questions than answers at this time. How long will this take? What changes might affect you and when? As a guideline, we are planning toward a third-quarter transaction close. Between now and then, the leadership team for the new company will be named; this week Tom Horton and Doug Parker shared that they expect to name the senior team around the end of May or early June. And, once the merger closes, you will start to see things change as we begin to implement our integration plans.

Following close, we anticipate it could take at least 18 months before we operate as a single carrier. In the interim, we’ll begin to extend to customers some of the benefits they’ll see from the merger, including the ability to combine flights on a single itinerary and earn and redeem frequent flyer miles across airlines. We are committed to educating our employees on those changes so that you can provide the best service to our customers. Only later in the process will we combine, for example, reservations systems and combine our operations control centers.

Our goal is to make these transitions as smooth as possible at every phase. Please watch for regular updates from us as the work of the IMO continues, and we encourage you to read each
weekly edition of our joint merger newsletter Arrivals, which you can find on Jetnet or Wings, to learn more about what’s happening across both airlines.

While our integration planning teams continue their work, the biggest priority for all of our employees is to stay focused on running both airlines safely while maintaining a reliable and convenient experience for our customers.
We have a great deal of work ahead as we plan to put the new American back on top. With the best people in the industry alongside us, we know we will succeed. A big thanks to all of you for your hard work and commitment to our customers as our busy summer travel season approaches.

Sincerely,

Robert Isom & Bev Goulet

We asked attendees from both American and US Airways about their takeaways from this year’s conference. Here are some of the thoughts they shared:

Get the full issue of Arrivals below

Planning for our merger is moving along at a good pace, and we’re pleased to report great progress from the teams responsible for each phase and every detail involved in joining our two great airlines.

From the start of this journey, our Integration Management Office (IMO) has been focused exclusively on planning the path to a successful merger and the launch of the world’s premier global carrier. In this work, we expect to generate more than $1 billion in synergies and to create a secure future for employees, and will manage the process with our customers always first in mind.

At this point, 29 integration planning teams and several cross-functional task forces are at work to define the manner in which the two companies will combine our commercial, customer service, operations and corporate functions after the merger closes.

Last month these teams gathered in Tempe to kick off this work. This coming week, a number of the teams will take part in a Planning Summit in Dallas/Fort Worth with a focus on the most pressing work that must be accomplished during the months leading up to the close of the merger, including what our customers see and hear from us on day one and how we bring our more than 100,000 employees together as one team.

One of our priorities is putting together the strongest possible leadership team for our combined airline. We are taking the right amount of time to make the most thoughtful decisions and to get it right – not to do it quickly. We go into this task confident that we have tremendous people at each airline and will only be stronger together when we make the right leadership selections. We announced our merger in mid-February and expect to announce the new senior leadership team, Doug’s direct reports, sometime late this month or in early June. We will build out the rest of the officer corps from there. We know there is much interest in this, and we will keep you informed along the way.

We also remain committed to communicating frequently and transparently. Please keep in mind that this integration planning effort is a careful and deliberative process, and we’re still in the middle of it. We have the benefit of learning from the experiences of airlines that already have merged, even as we plot our unique course.

We still expect the merger to close in the third quarter of this year, and we will then move forward with a carefully designed, step-by-step plan that leads to the day we operate as a single carrier. That could be 18 months or more from the time the merger closes, but the date is less important than the details, which we are working very hard to get right.

The most important thing we can do to ensure a strong future for the new American is to continue to operate our respective airlines safely, and on time, and focused on our customers. Keep up the great work.

Tom & Doug

The workforces of American and US Airways are more similar than not, and are comparable when it comes to average age and seniority. As you can see in the charts*, skill and experience are two things that our companies both have in abundance. Each airline has thousands of employees with more than 35 years of committed service, including several who have worked for us for more than half a century. At the same time, talented new people join our ranks every day, giving us both a wide range of diverse and interesting perspectives.

In addition to planning all aspects of the merger and the integration process, the leaders of American and US Airways have been taking time to get to know each other. Senior executives and advisors from both companies gathered at the annual Hugh O’Brian Youth Leadership Foundation’s 2013 awards dinner, where US Airways CEO Doug Parker received the Albert Schweitzer Leadership Award for his achievements as CEO and his involvement in the community.

Get the full issue of Arrivals below

Get the full issue of Arrivals below.

Get the full issue of Arrivals below.

From design to delivery, creating new uniforms will take 18-24 months and the KAUFMANFRANCO design duo will use the survey results to inform and inspire their creations. The survey is the start of the uniform marathon. Once employees have completed the survey, everything from the design of the uniforms, fabric choices, colors, accessories, fittings to manufacturing will get underway.

The survey closes April 18 so let’s sprint to the finish line!

Get the full issue of Arrivals below.

American CEO Tom Horton and US Airways CEO Doug Parker kicked off the session Tuesday morning, welcoming approximately 150 employees of both airlines. Tom, who is chairman of oneworld®, shared the benefits the merger would have on our customers, employees and shareholders, and outlined how this combination would make oneworld® stronger.

“The combination of American and US Airways will create a more equal alliance share in the United States; oneworld® is the preferred alliance for premium customers,” Tom said.

Get the full issue of Arrivals below.

On Wednesday, Bankruptcy Court Judge Sean Lane approved the merger agreement between American and US Airways that was announced on Feb. 14, noting that the merger is an “excellent result” for stakeholders. An exciting step forward in the evolution of the new American, today’s approval allows us to continue progressing with our planned merger.

The Court approved the merger agreement but deferred ruling on Mr. Horton’s compensation arrangement. Additionally, as a result of the evidence presented in yesterday’s hearing, the U.S. Trustee withdrew its other objections to the merger agreement. Also in the hearing, the Court approved American’s final exclusivity extension request, which gives AMR until May 29 to file its Plan of Reorganization.

We’re pleased to have received these approvals and share this news with you, and look forward to receiving Judge Lane’s written ruling.

Get the full issue of Arrivals below.

As Tom and Doug announced a couple of weeks ago, we are together leading the team that will design and oversee the American Airlines / US Airways integration. We wanted to take this opportunity to update you on the integration structure and immediate next steps.

Integration Structure

We have created an overall structure to manage the integration. As previously announced, a Transition Committee, led by Doug and Tom, will oversee the total integration, make near-term strategic decisions, resolve integration issues and allocate resources. The Transition Committee will be supported by an Integration Management Office.

The Integration Management Office (IMO) will be the primary nerve center for integration. Robert Isom, US Airways Chief Operating Officer, and Bev Goulet, American's Senior Vice President & Chief Integration Officer, will lead the IMO, with support from Derek Kerr, US Airways EVP and Chief Financial Officer and Denise Lynn, American's SVP of People. Joining them as full-time IMO members are:

• Kerry Hester, US Airways SVP of Customer Experience
• Jim Butler, American's Managing Director of Commercial Planning and Performance
• Candice Irvin, American's Managing Director of Corporate Development
• Matt Pfeifer, American's Managing Director of Operations Strategic Planning

The IMO will be based in Dallas, with support in Phoenix. We've also retained McKinsey & Company to assist us on this project. As I'm sure you know, McKinsey is a highly respected consulting company with a lot of relevant experience in this area.

All integration-related topics will be cenrally managed and coordinated through the IMO. Specifically, this team will focus on:

• Capturing the value of the merger (cost savings and increased revenues)
• Developing the master plan and timeline for the integration
• Working in close collaboration with the People departments of both carriers to implement the design of the new organization

Importantly, the IMO, working closely with the Communications team, will also manage integration communications. Our aim will be to communicate regularly and frequently, so that you know what's happening and what to expect.

The Transition Committee will also provide oversight and guidance on issues of a strategic nature that must be addressed before the merger closes. While each airline will continue to operate separately during this interim period, there will be some decisions that require joint approval. These will be handled by the Transition Committee.

As we start working towards the integration, we ask that you focus on running our two great airlines as usual, and be guided by this simple principle: continue to put the customer at the center of all that you do. Please respect our legal obligations to maintain separate, competing businesses until the merger closes.

Thank you for your support as we begin preparing to combine our two companies. We have a bright future ahead and we'll keep you updated along the way.

Sincerely,

Bev Goulet & Scott Kirby

Tom Horton on the future of the new American:
“…Our merger with US Airways will create the new American Airlines, a global competitor worthy of bearing the name of our country as America’s flag carrier. Flying under the iconic American Airlines brand, it will be positioned to compete – not just against other domestic carriers but against the best the world has to offer. Doug and I are aligned and very focused on ensuring that this merger delivers on the promises and potential it has to offer for our customers, our people and our owners.”

Get the full issue of Arrivals below.

Dear Chairwoman Klobuchar:

As you know, the management teams of American Airlines and US Airways have announced their intention to merge the two companies to form the world’s largest airline. Employees of both airlines have welcomed the news with great excitement. In fact, the employees at American Airlines played a critical role in driving the deal. As the elected leadership of many of the companies’ workgroups, we can say with certainty that our colleagues are looking forward to the day our operations are combined. Not only will 100,000 employees benefit from the proposed merger, but so will the new American Airlines, the communities we serve, our companies’ investors, the commercial aviation industry, and the flying public.

Before the
Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy, and Consumer
Rights

Hearing on “The American Airlines/US Airways Merger: Consolidation, Competition, and Consumers”

March 19, 2013

Get the full issue of Arrivals below.

The conference provides the investment community with an opportunity to gain insight into a select group of companies in the aviation industry and other industries. On stage in front of industry leaders and experts, Doug discussed the numerous benefits of a merger for the millions of people affected by the airline business, from employees to passengers to communities throughout the world. Audio playback of Doug’s presentation, “Creating A Premier Global Carrier,” can be found on usairways.com (Company info >> Investor relations >> Webcasts).

Get the full issue of Arrivals below.

Helping to guide the companies through this process are US Executive Vice President, Corporate and Government Affairs, Steve Johnson and AA Senior Vice President, General Counsel and Chief Compliance Officer Gary Kennedy. The two legal experts testified before the House Subcommittee on Regulatory Reform, Commercial and Antitrust Law Tuesday about the many important benefits of our planned combination. Steve’s and Gary’s testimony was also attended by representatives of US Airways’ and American Airlines’ pilot and flight attendant unions, who were there to show their support for the merger. The labor unions of both companies share our belief that this merger is the best path forward for all our employees.

Get the full issue of Arrivals below.

Before the
COMMITTEE ON THE JUDICIARY
SUBCOMMITTEE ON REGULATORY REFORM, COMMERCIAL AND ANTITRUST LAW

Hearing on Competition and Bankruptcy in the Airline Industry: The Proposed Merger of American Airlines and US Airways

February 26, 2013

BEFORE THE UNITED STATES HOUSE OF REPRESENTATIVES
COMMITTEE ON THE JUDICIARY
SUBCOMMITTEE ON REGULATORY REFORM, COMMERCIAL AND ANTITRUST LAW

COMPETITION AND BANKRUPTCY IN THE AIRLINE INDUSTRY:
THE PROPOSEDMERGER OF AMERICAN AIRLINES AND US AIRWAYS

FEBRUARY 26, 2013

A little more than a week ago we announced the merger between our two airlines that will create a new global premier airline. Today we are pleased to begin transition planning by naming the two team leads who will direct that work: US Airways President Scott Kirby and American Airlines Chief Restructuring Officer Bev Goulet. Scott and Bev will provide solid leadership to the critical task of transition planning – developing joint plans between now and closing our merger so that we are prepared to begin integration immediately upon closing. We expect to close our merger in the third quarter of this year.

Scott is the President of US Airways and was its team leader during the merger analysis and negotiations. During the due diligence process, he played a key role in shaping the revenue and cost benefits associated with a merger, as well as labor negotiations. Scott, along with many others on both teams, has worked hard to establish the collaborative relationship between both airlines’ labor unions. He has also worked closely with the American team over the last several weeks and has become well-versed in American’s operations.

For American, Bev has led one of the fastest and most successful airline restructurings in history, resulting in savings of more than $2 billion across the enterprise, and has also played a key role during the merger due diligence processes. Bev led the team that helped refine revenue and cost benefits of a merger and played a key role in negotiating the splits for US Airways and
American stakeholders.

Scott and Bev will be part of a Transition Committee chaired by the two of us, and together we will establish transition planning teams led by senior leaders from both airlines. The effort will be supported by an outside merger project management firm. More details will come in the very near future. The committee will be focused on our long-term goal of building a strong, profitable airline well equipped to invest in our people, products and technologies so that we can keep our loyal customers and attract new ones.

Please join us in congratulating Scott and Bev on their appointments. Ultimately, our people will be the most important element of our success as we put our two airlines together and build the new American. While we will continue to operate independently as the merger is under review, we look forward to the opportunity to work as one team and do great things together as we create a premier global airline.

We will continue to update you as transition planning work continues. In the meantime, thanks for all you are doing to run two great airlines and continuing to take care of both airlines’ customers.

Sincerely,

Tom & Doug

Get the full issue of Arrivals below

The New American is Arriving - 60 sec. Commercial