American Airlines to Buy AirCal to Boost Its Western Service

American Airlines announced today it is buying California-based AirCal for $225 million to bolster its service in the West.

American said it plans to acquire ACI Holdings Inc., parent company of AirCal, based in Newport Beach, Calif., for $15 per share of common stock in a cash transaction. The merger, approved by the boards of directors of both companies, must be approved by the U.S. Department of Transportation.

American Airlines spokesman John Hotard said the carrier has long needed a West Coast hub. He said American will take over AirCal’s fleet of 39 planes, based at John Wayne Airport in Orange County, Calif.

American also will acquire AirCal’s routes, which serve 17 cities in six states and Canada.

AirCal’s workers will be offered jobs with American, Hotard said.