American Airlines agreed to merge with US Airways, paving the
way for the creation of the nation's largest airline.  The
boards of the companies have unanimously approved the deal,
valued at $11 billion, according to a news release Thursday.
Under the terms of the deal, US Airways shareholders would own
28 percent of the combined airline, while American Airlines
shareholders, creditors, labor unions and employees would own 72
percent.  The merger would create a company with the size and
breadth to compete against United Airlines and Delta Air Lines,
which have grown through mergers in recent years and are
currently the biggest domestic carriers. The combined airline
will have more than 100 million frequent fliers.  W. Douglas
Parker, the chairman and chief executive of US Airways, would
take over as American's chief executive. Thomas W. Horton,
chairman and chief executive of the AMR Corp., American's
parent, would be chairman of the combined company.  "I have been
a long proponent of consolidation in the ind