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Fitch: American and US Airways Merger Could Affect Hub Operations



  Fitch: American and US Airways Merger Could Affect Hub Operations

Business Wire

NEW YORK -- February 13, 2013

Link to Fitch Ratings' Report: American Airlines Merger with US Airways
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=701531

Fitch Ratings has published a new special report titled 'American and US
Mergers Could Affect Hub Operations'. The report provides an update on issues
affecting airports currently providing large scale connecting traffic
operations for the two carriers.

A merger of two of the largest U.S. based carriers, American Airlines and US
Airways, would be the fourth major consolidation of domestic airlines during
the past five years. In Fitch's view, such events are material to the U.S.
airport sector from a credit perspective as consolidation allows for
opportunities to make changes in route networks and hub arrangements. As seen
in recent mergers, some hub airports will likely be strengthened through
industry consolidation while others are weakened.

To the extent a merger consummates between American and US Airways, the
combined carrier would effectively maintain six hub airports in Dallas-Ft.
Worth, Miami, Chicago, Philadelphia, Charlotte and Phoenix. Separately, the
combined carrier would maintain a sizable presence in markets like New York,
Los Angeles and San Francisco. While geographic location and separation helps
support a rationale for hubs, it is still fair to ask whether maintaining as
many as six hub airports at the same level of operations will be necessary to
maintain an efficient single network.

The full report is available at 'www.fitchratings.com'.

Additional information is available on www.fitchratings.com.

Applicable Criteria and Related Research:

--'Rating Criteria for Airports', Nov. 28, 2012;

--'Rating Criteria for Infrastructure and Project Finance', July 12, 2012.

Applicable Criteria and Related Research:

Rating Criteria for Airports

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695600

Rating Criteria for Infrastructure and Project Finance

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682867

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contact:

Fitch Ratings
Seth Lehman, +1-212-908-0755
Senior Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Mike McDermott, +1-212-908-0605
Managing Director
or
Reed Singer, +1-312-368-3120
Director
or
Media Relations
Elizabeth Fogerty, New York, +1-212-908-0526
elizabeth.fogerty@fitchratings.com
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