US Airways leads AMR merger to create largest airline

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The news that US Airways and American Airlines plan to merge will come as no surprise to airline industry watchers. Although American previously appeared to rebuff US Airways’ advances, those close to the carriers said instead that it was a bargaining ploy.  Now, of course – well, when the transaction is completed in the third quarter (barring impediments) – the real work of integrating cargo operations will start, although it is possible that US Airways has more to learn from AA about the international freight business than the other way round. Does this mean that United, now far down the road of integration, will remain one step ahead? Or will the might of the new American be too much competition to take?