American Airlines grounds flights, reveals new merger details

April 16, 2013

As American Airlines grappled with a failed computer system, more information came to light about the company’s proposed merger with US Airways. 

If bankrupt American joins with Tempe-based US Airways, the company will become the largest carrier in the U.S. The new American plans to use the same reservation system that broke down Tuesday, grounding all its flights in the U.S. for several hours.

In the meantime, court papers filed Monday reveal US Airways CEO Doug Parker got a 44 percent raise last year, taking in a total of $5.5 million. Parker is set to run the new airline.

The filings also propose a $20 million severance package for American CEO Tom Horton. A federal bankruptcy judge rejected that deal last month but said the board of the new carrier could approve the payout.

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