The new American is Arriving May 17, 2013. Important Information for Investors and Stockholders...

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The new American is Arriving May 17, 2013

Transcript of The new American is Arriving May 17, 2013. Important Information for Investors and Stockholders...

Page 1: The new American is Arriving May 17, 2013. Important Information for Investors and Stockholders Additional Information and Where To Find It This communication.

The new American is Arriving

May 17, 2013

Page 2: The new American is Arriving May 17, 2013. Important Information for Investors and Stockholders Additional Information and Where To Find It This communication.

Important Information for Investors and Stockholders

Additional Information and Where To Find ItThis communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. The proposed merger transaction between AMR Corporation (“AMR”) and US Airways Group, Inc. (“US Airways”) will be submitted to the stockholders of US Airways for their consideration. AMR expects to file with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-4 that will include a prospectus of AMR and a proxy statement of US Airways, and US Airways expects to file with the SEC a definitive proxy statement on Schedule 14A. AMR and US Airways also plan to file other documents with the SEC regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS OF US AIRWAYS ARE URGED TO READ THE PROXY STATEMENT, PROSPECTUS AND OTHER RELEVANT DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the proxy statement, prospectus and other documents containing important information about AMR and US Airways, once such documents are filed with the SEC, through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by US Airways, when and if available, can be obtained free of charge on US Airways’ website at www.usairways.com or by directing a written request to US Airways Group, Inc., 111 West Rio Salado Parkway, Tempe, Arizona 85281, Attention: Vice President, Legal Affairs. Copies of the documents filed with the SEC by AMR, when and if available, can be obtained free of charge on AMR’s website at www.aa.com or by directing a written request to AMR Corporation, P.O. Box 619616, MD 5675, Dallas/Fort Worth International Airport, Texas 75261-9616, Attention: Investor Relations or by emailing [email protected].

US Airways, AMR and certain of their respective directors, executive officers and certain members of management may be deemed to be participants in the solicitation of proxies from the stockholders of US Airways in connection with the proposed transaction. Information about the directors and executive officers of US Airways is set forth in its proxy statement for its 2012 annual meeting of stockholders, which was filed with the SEC on April 27, 2012. Information about the directors and executive officers of AMR is set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2011, which was filed with the SEC on February 15, 2012. These documents can be obtained free of charge from the sources indicated above. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the prospectus and proxy statement and other relevant materials when and if filed with the SEC in connection with the proposed transaction.

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Forward-Looking StatementsThis document includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “project,” “could,” “should,” “would,” “continue,” “seek,” “target,” “guidance,” “outlook,” “forecast” and other similar words. These forward-looking statements are based on AMR’s and US Airways’ current objectives, beliefs and expectations, and they are subject to significant risks and uncertainties that may cause actual results and financial position and timing of certain events to differ materially from the information in the forward-looking statements. The following factors, among others, could cause actual results and financial position and timing of certain events to differ materially from those described in the forward-looking statements: failure of a proposed transaction to be implemented; the challenges and costs of closing, integrating, restructuring and achieving anticipated synergies; the ability to retain key employees; and other economic, business, competitive, and/or regulatory factors affecting the businesses of US Airways and AMR generally, including those set forth in the filings of US Airways and AMR with the SEC, especially in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of their respective annual reports on Form 10-K and quarterly reports on Form 10-Q, their current reports on Form 8-K and other SEC filings, including the registration statement, proxy statement and prospectus. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements. Neither AMR nor US Airways assumes any obligation to publicly update or supplement any forward-looking statement to reflect actual results, changes in assumptions or changes in other factors affecting these forward-looking statements except as required by law.

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Page 4: The new American is Arriving May 17, 2013. Important Information for Investors and Stockholders Additional Information and Where To Find It This communication.

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• Creates a premier global carrier• 6,700 daily flights to 336 destinations in 56 countries• The new American will be part of the oneworld® Alliance with more than two dozen airline partners

• Offers consumers more choices and better service • A more robust global network with the ability to connect more passengers to more places• Additional investments in products and services to improve travel experience• Improved loyalty benefits by expanding opportunities to earn and redeem miles • Highly competitive for global corporate accounts

• Expects to maintain all existing hubs and service to all destinations• Chicago, Charlotte, Los Angeles, Philadelphia, Dallas/Ft. Worth, Phoenix, Miami, New York,

Washington, D.C. (DCA)

• Significant benefits for employees• New precedent for labor/management partnership within airline industry• American unions representing pilots and flight attendants are working with their US Airways

counterparts to determine representation and single agreement protocols• Creates greater career opportunities for employees over the long term

Introducing the New American Airlines

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Merger Creates Significant Value

Ownership

Management and Board Structure

Corporate Structure

•Airline Name and Brand: American Airlines•Holding Co: American Airlines Group Inc.

•Tom Horton: Chairman•Doug Parker: CEO•Board comprised of 5 AMR creditor

representatives, 3 current AMR directors, 4 US Airways representatives

•Best of both executive teams

•All-stock transaction •Combined 2012 revenue of $38.7 billion•Ownership:

• 72% AMR stakeholders• 28% LCC shareholders

Corporate Presence

•Headquartered in Dallas-Fort Worth •Maintain a significant corporate and

operational presence in Phoenix

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Global Network Carrier

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Combination will create three similarly sized, competitive global network carriers

Source: Full Year 2012 Consolidated ASMs, as reportedSouthwest and others also provide competition in the marketplace

+

2012 Consolidated Available Seat Miles

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Source: Diio Mi July 2012 Peak Day Schedule. Southwest, JetBlue and others also provide competition in the marketplace

ORD

BUF

5 Daily Flights

BUF

ATL

DTWJFK

MSP

26 Daily Flights 19 Daily Flights

BUF EWR

ORD IADCLE

23 Daily Flights

BUF

ORD

CLT

DCA

PHL

BOSLGA

• US strong on East Coast but not everywhere else• AA cannot connect customers up and down the East Coast• Merger solves scale problem for US and AA

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AA/US Alone Are Uncompetitive Versus DL and UA

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Comprehensive Connectivity East and West for Customers

New Orleans

Birmingham

Huntsville

Memphis

Dayton

Cincinnati

Rochester

Buffalo

ORD

DFW

JFK

MIA

Ottawa

Richmond

Baton Rouge

Source: Diio Mi April 2012 Peak Day Schedule

Syracuse

Harrisburg

White Plains

Louisville

Greenville

Greensboro

Charleston

Savannah

Knoxville

Merger creates a comprehensive network that can compete with United, Delta and others

PHL

DCA

CLT

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World-Class Global Network

Asia/Pacific5 Destinations8 Routes

Mexico20 Destinations42 Routes

South America21 Destinations34 Routes

Europe / Middle East21 Destinations52 Routes

Caribbean32 Destinations93 Routes

Central America10 Destinations22 Routes

Canada9 Destinations30 Routes

Diio 2013 published schedules as of January 25, 2013

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Complementary Domestic NetworkDomestic Network218 Destinations

682 Routes

Diio 2013 published schedules as of January 25, 2013

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Right Aircraft in the Right Place at the Right Time

In-Service Aircraft at year-end 2012; includes aircraft operated by other airlines under capacity purchase agreements

The new American Airlines will have one of the most modern and efficient fleets in the industry

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Roadmap to CompletionTarget closing and emergence in the third quarter 2013

Key conditions

• Stakeholder Approval of Plan of Reorganization and Court Confirmation by the U.S. Bankruptcy Court for the Southern District of New York

• Regulatory approvals and customary closing conditions

• Approval by US Airways shareholders

• No financing condition or consents or approvals required from labor unions

In the meantime

• Business as usual at US Airways, contracts and codeshares remain unchanged. No decisions around Sabre, Shares, PRISM or other systems.

• Dividend Miles are safe and frequent flyers can continue to earn and redeem miles with US and our Star Alliance partners

• We will keep you updated as soon as we know more. Visit these sites for more: usairways.com/arriving and newamericanarriving.com.

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US Airways Update

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Some Quick Facts About US Airways

•Hubs in CLT, PHL, PHX and DCA

• Serve over 200 destinations

• US Airways serves the 2nd most destinations in Europe and the Caribbean of domestics carriers

• Over 3200 daily flights

• 32,000 employees

• Member of the Star Alliance

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• Operations accomplishments– Best annual operational performance since merger for D0, A14, CF, MBR

– More 100% CF days in 2012 than in prior 7 years combined

– Strong improvement in DOT Complaints in 2nd half of the year

– Implemented TSA’s Pre program

• Green Team programs promoting environmental sustainability– $3.1M in savings YOY through October by safely reducing arrival fuel

– $1.2M in savings YOY by reducing excess fuel during the aircraft fueling process

– 7M pounds of recyclable waste diverted from landfills

2012 Accomplishments

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Best Annual Performances On Record

76.8%

68.7%

80.1% 80.9% 83.0%

79.8%

85.9%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012

On-Time Arrivals

98.9%

98.2%

98.6% 98.8%

98.5% 98.4%

99.0%

97%

98%

99%

100%

2006 2007 2008 2009 2010 2011 2012

Completion Factor

7.828.47

4.77

3.03 2.56 2.702.14

0.00

2.00

4.00

6.00

8.00

10.00

2006 2007 2008 2009 2010 2011 2012

Mishandled Baggage

55.2%

46.1%

65.9% 71.0% 72.1%

67.8% 74.0%

30%

40%

50%

60%

70%

80%

90%

2006 2007 2008 2009 2010 2011 2012

On-Time Departures

All values shown are DOT-reportable metrics

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New Services to Sao Paulo, Brazil (GRU)

Non-stop Charlotte to Sao Paulo begins June 8, 2013

Boeing 767-200 aircraft with seating for 18 in Envoy, US Airways’ international business class, and 186 in the main cabin.

Charlotte Douglas International Airport (CLT) – Sao Paulo-Guarulhos International Airport (GRU)Flight 802 Departure 5:50 p.m. Arrival 4:30a.m.*

•Flight arrives next day.

Sao Paulo-Guarulhos International Airport (GRU) – Charlotte Douglas International Airport (CLT)Flight 803 Departure 8:25a.m Arrival 5:25 p.m.

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Envoy Suite

US Airways Envoy Suite available on ALL Airbus 330’s

A comfortable, convenient and private environment

• A fully adjustable seat with a lie-flat bed

• Direct aisle access from each Suite with all seats facing forward

• Generous personal space and stowage

• An easy-to-reach technology panel, including a 110-volt universal power outlet, satellite telephone and USB port

• State-of-the-art personal entertainment system with a 12.1” adjustable screen

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Track your checked bags online and in real time

• Our baggage tracking system shows the date, local time and location where their bags are scanned, as well as when their bags are on and off a plane.

• All they need to do is go to baggagetracker.usairways.com and enter their last name and bag tag number or confirmation code from their baggage claim ticket to track their bags.

Now your clients can watch their bag’s journey from departure to arrival.

Whether it’s a flight across the country or a quick trip across the pond, we know how important it is that your clients’ bags arrive when they  do.

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DCA Market Expansion – 233 Daily FlightsMore Non-stop service to more cities than any other carrier

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2012 2013 2014 2015

737s 15 18 14

A320 Family (older models) 3 7 12

Largest Airbus operator in the worldAverage age at end of Q3 2012 is 12.7 years (second-youngest network)

Retirements

2012 2013 2014 2015

A320 Family 12 16 18 12

A330 5 3

E190 2 3

Fleet – New Deliveries and Retirements

Inductions

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Gogo Wi-Fi Progress

Updated May 3, 2013

US Airways Sales Department – February 2013

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Questions?