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TEMPE - AP sources have just disclosed that Tempe based US Airways and American Airways have agreed to merge, creating the world's largest passenger airline carrier. The carrier keeps the American Airlines name.

Directors from both airlines met today, hoping to secure a deal. A formal announcement is expected Thursday morning.

Meantime, US Airways CEO, Doug Parker is assuring Arizonans there will be no negative impact to the state's economy. During a meeting with Gov. Jan Brewer earlier in the week, Parker said it is possible the company headquarters could move to Texas, but the majority of jobs in Phoenix will stay. He also told her that Phoenix Sky Harbor International Airport would remain a hub.

Together, American and US Airways will be slightly bigger than United Airlines, thus, the world's biggest airline.