American Airlines has emerged as the world's largest airline, combining with US Airways after a hard-fought battle to overcome US competition concerns.

AMR Corporation, the parent of American Airlines, and US Airways Group announced on Monday they had completed the deal after AMR emerged from bankruptcy protection.

The new American Airlines Group is a goliath, providing nearly 6,700 daily flights to more than 330 destinations in more than 50 countries.

"Our people, our customers and the communities we serve around the world have been anticipating the arrival of the new American," said Doug Parker, chief executive of American Airlines and the former chairman and CEO of US Airways.

"We are taking the best of both US Airways and American Airlines to create a formidable competitor, better positioned to deliver for all of our stakeholders. We look forward to integrating our companies quickly and efficiently so the significant benefits of the merger can be realised."

The creation of a third giant carrier to compete with US rivals United and Delta cleared a major hurdle in November after the Justice Department announced a settlement to resolve antitrust concerns.

As part of the combination, US Airways will exit Star Alliance on March 30 and will enter the next day the Oneworld Alliance, joining American with airlines including British Airways, Cathay Pacific, Japan Airlines and Qatar

"Customers will begin to see enhancements to their experience in early January, including the ability to earn and redeem miles when traveling on either American Airlines or US Airways, reciprocal American Admirals Club and US Airways Club benefits, and reciprocal elite recognition," the companies said.

Source: Agencies