Report: US Airways-American Airlines Merger Approved

CNN is reporting that the boards of US Airways and American Airlines parent AMR have approved a deal that could create the world's largest airline, according to a source familiar with the talks.

The new airline will beef up American's network, particularly along the East Coast, where US Airways is a major player with its Washington-New York Shuttle and hubs in Philadelphia and Charlotte.

The combination of US Air and AMR, which filed for bankruptcy in November 2011, is the latest in a series of moves that have whittled what were 10 major airlines 2001 down to four mega-carriers.

The combined U.S. Airways-American joins United Continental, Delta Air Lines and Southwest Airlines as the industry's dominant players in the U.S. Together they accounted for 83 percent of U.S. airline passengers last year. The consolidation has meant fewer choices for the nation's fliers, who have only one non-stop choice available to them on about a third of the nation's major routes.