U.S. Airways Group and U.S. Airways have merged into their parent companies American Airlines Group Inc (OTCMKTS:AAMRQ) and American Airlines as a part of the company’s effort to bring the operation of all the businesses under one canopy. The two units ceased to exist as separate companies from December 30, 2015. The American Airlines have been operating as a single brand and booking system from October and hence the official announcement of the merger of its units came as no surprise.
According to Matt Miller, the spokesperson of American Airlines, the change will be limited to official use and would not affect in any way the working of the company, its employees and the customers. With the merger of the two companies, the obligations of both the U.S. Airways Group and U.S. Airways will now become the obligations of the American Airline Group and the American Airlines respectively.
American Airlines ratings upgraded
The Fitch ratings for American Airlines Group Inc. have elevated to ‘BB’ from the earlier rating B+. The same ratings also apply to other primary operating subsidiaries of the American Airlines Group including US Airways Group, American Airlines Inc., and US Airways, Inc. The end of the release describes the up gradation or affirmation of different classes of the US Airways and American Airways Group by Fitch.
These new ratings from Fitch have been evaluated after analyzing the solid financial results that the company posted after merging with its units simultaneously emerging from bankruptcy. It also indicates that the integration process of the American Group going on for last two years had a smooth transition without causing any risk.
According to Fitch, the rating pressure due to integration risk is now over and that the two companies have merged successfully into one reservation system. Fitch expects that the financial results will continue to be strong for the company during the intermediate term based on the factors such as low fuel costs and stable environment for domestic travel.
