American Airlines parent AMR Corporation has agreed a merger with US Airways, ending weeks of speculation a deal was imminent.

The boards of directors of both companies have unanimously approved a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion.

Operating under the American Airlines name, the combined airline will have a robust global network and a strong financial foundation. 

The new carrier will remain part of the oneworld Alliance, of which American Airlines is a founding member. 

With firm orders for more than 600 new mainline aircraft, the combined airline will have one of the most modern and efficient fleets in the industry, and a solid foundation for continued investment in technology, products, and services. 

Thomas Horton, chairman, American Airlines, will serve as chairman of the combined airline’s Board of Directors through its first annual meeting of shareholders, and will also serve as the combined airline’s representative to the oneworld Alliance, of which he is currently chairman, and International Air Transport Association for the same duration. 

Doug Parker, chairman and chief executive of US Airways, will serve as chief executive officer and a member of the Board of Directors. 

Parker will assume the additional position of chairman of the Board following the conclusion of Horton’s service. 

Under the terms of the merger agreement, US Airways stockholders will receive one share of common stock of the combined airline for each share of US Airways common stock then held. 

In connection with the merger agreement, AMR has entered into a support agreement with certain unsecured creditors holding approximately $1.2 billion of prepetition unsecured claims against the Debtors. 

The combined airline will offer more than 6,700 daily flights to 336 destinations in 56 countries. 

The combined airline is expected to maintain all hubs currently served by American Airlines and US Airways, resulting in more travel options for customers. 

“Today, we are proud to launch the new American Airlines – a premier global carrier well equipped to compete and win against the best in the world,” said Horton.

“Together, we will be even better positioned to deliver for all of our stakeholders, including our customers, people, investors, partners, and the many communities we serve.”