The boards of United's parent company, UAL Corp., and US Airways Group Inc. have approved the deal, the companies said today. As part of the deal, UAL will sell some operations in Washington, D.C., to entrepreneur Robert L. Johnson, who will form DC Air, the nation's first black-owned airline.
Any deal is subject to approval by shareholders and regulators.
United promised to freeze some domestic fares for two years following the acquisition, except for increases to pay for fuel costs and inflation. It also said it would sell some operations in the Washington, D.C., area to relieve competition concerns. The companies said their frequent-flier programs will be consolidated, and will offer more destinations than any other airline. United is part of the international Star Alliance, which includes Air Canada and Lufthansa among others, and has a separate mileage-sharing deal with Delta Airlines. US Airways and American Airlines, the world's second-largest airline, have their own mileage partnership.