American Airlines, US Airways Merger Eyes Latin American Market

(AP Photo/Andy King, File)

(AP Photo/Andy King, File)

American Airlines and US Airways are coming together to create the world’s biggest airline.

The $11 billion deal announced Thursday means the combined airline will offer more than 6,700 daily flights to 336 destinations in 56 countries.

The deal will boost travel to Latin America since American Airlines is the dominate U.S. player in the region. In Brazil alone, it has 111 weekly flights to seven different cities. 

“This is great news for Latin American,” Pedro Fábregas, vice president of American Airlines  told Fox News Latino.

He added that “Latin America is super important” for this merger.

Though Fábregas would not specify why it would be good news for the region, the merger is widely expected to increase the number of flights to Latin America.

The deal will allow each airline to bring something different to the table. While U.S. Airways is the principal carrier to major domestic routes and key European cities, it is American Airline’s large presence in Latin America that could prove to be the most profitable aspect of the deal.

In 2011, 22.8 percent of American Airlines revenue came from Latin America, with foreign revenue accounting for 42.4 percent.

In comparison for the same year, U.S. Airways foreign revenue was just 25.6 percent.

Despite the fact that U.S. Airways does not report its revenues in Latin America, the company has said that the region was one of its strongest international performers.

As Boeing has pointed out in their analysis of the Latin American market, the region is “the greatest opportunity for growth.”

 “The anticipated increase in international traffic from the 2014 World Cup and the 2016 Olympics in Brazil highlight the need for investment.”

Back in December, American Airlines announced they were expanding their presence in the area because "we recognize the opportunity of the Latin American market," American's Chief Commercial Officer Virasb Vahidi said in a written statement.

Commercial aviation is increasingly dominated by mega-carriers that promise to whisk passengers around the globe with ease.

Now with the creation of their own airline behemoth, both companies can have a shot at winning back business travelers.

The Associated Press contributed to this report.

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