Patty, just a clarification - it was officially called a merger - but in reality, US Air took over American, not American taking over US Air as most of the US Air Sr Leadership team stayed in place and are now running the combined company They kept American's name because it had a higher value with a broader customer base, but then started turning it into "US Air", just with AA's name.

Here is a recap on the report of the "merger":

In January 2012, US Airways Group, the parent company of US Airways, expressed interest in taking over AMR Corporation, the parent company of American Airlines.[7] In March, AMR's CEO Tom Horton said that the company was open to a merger.[9] US Airways (US) told some American Airlines (AA) creditors that merging the two carriers could yield more than $1.5 billion a year in added revenue and cost savings.[10] On April 20, American Airlines' three unions said they supported a proposed merger between the two airlines.[11] Under Chapter 11 bankruptcy protection, American Airlines had been looking to merge with another airline. Earlier in July, a bankruptcy court filing stated that US Airways was an American Airlines creditor and "prospective merger partner"; on August 31, US Airways CEO Doug Parker announced that American Airlines and US Airways had signed a nondisclosure agreement, in which they would discuss the possibility of a merger.[12]

In February 2013, American Airlines and US Airways announced plans to merge, creating, by some measurements, the largest airline in the world. In the deal, which was expected to close in the third quarter of 2013, stakeholders of AMR would own 72% of the company and US Airways shareholders would own the remaining 28%. The combined airline will carry the American Airlines name and branding; the holding company will be renamed American Airlines Group Inc.[13] [color:"black"]The US Airways' management team, including CEO Doug Parker, will retain most operational management positions.[/color] The headquarters for the new airline will also be consolidated at American's current headquarters in Fort Worth, Texas.[14][15] US Airways will exit Star Alliance upon completion of the merger, and American will retain its Oneworld alliance. Judge Sean Lane approved the merger on March 27, 2013, but declined to approve a proposed $20 million severance package to AA executive Thomas W. Horton.[16] On July 12, US Airways shareholders approved the proposed merger.[17]