US Airways' head to retain post after merger with American

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NEW YORK — Doug Parker, CEO of US Airways, will be at the helm of a combined American and US Airways

Tom Horton, current CEO of American, will serve as chairman for about a year and then depart the company he worked at for nearly a quarter century. For his efforts, he will receive $19.9 million in cash and stock as well as a lifetime of free first-class tickets on American for himself and his wife.

Horton said the first conversation the two men had about a possible merger took place in September 2011, when Horton was American’s president.

On Aug. 31, 2012, American announced that nondisclosure agreements had been signed and they were considering a merger.

After months of negotiations, US Airways presented the merger to its creditors on Jan. 10.

Parker badly wanted to be the one in charge. Horton, who had spent almost half his life at American, believed he should be able to finish what he started.

A small group of advisors met with Horton, saying the airline needed a fresh start. Horton eventually agreed to hand over the reins to his friend and rival, Parker.

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