American Airlines and US Airways have agreed to terms of a potential merger, according to reports.

Management from both airlines reached an agreement and their respective boards are set to vote on it today, according to Bloomberg. Equity in the new company would be split 72% for American parent AMR's creditors and 28% for US Airways shareholders.

The airlines are widely expected to make an announcement on Thursday morning, 14 February.

American and US Airways decline to comment.

Doug Parker, chief executive of Tempe, Arizona-based US Airways, is slated to become chief executive and Tom Horton, chairman and chief executive of American parent AMR, non-executive chairman of the combined airline, according to reports.

Parker has previously said that a merged carrier would retain the American name, be based in Fort Worth, Texas, and be a member of the Oneworld alliance.

A combined American-US Airways would be the largest in the USA with more than 170 million passenger enplanements per year and more than $38 billion in annual operating revenues, based of 2012 numbers. It would have hubs at Charlotte, Chicago O'Hare, Dallas-Fort Worth, Los Angeles, Miami, New York John F. Kennedy (JFK), Philadelphia, Phoenix and Washington National.

Source: Air Transport Intelligence news