The New AA Selects KPMG over E&Y for Audit Services

I’ve met a lot of BoardingArea readers who travel thanks to their audit jobs and so this may be of some interest –  the new American has selected KPMG over E&Y for audit services.

Pre merger AA had used Ernst & Young  since the firm was formed in 1989 after the merger of Ernst & Whinney and Arthur Young. Even prior to that, Arthur Young had been American’s auditor for years. US Airways has been a KPMG client for over 10 years

The SEC filing:

Item 4.01. Changes in Registrant’s Certifying Accountant.

On December 9, 2013 (the “Effective Date”), US Airways Group, Inc. (“USG”) became a wholly owned subsidiary of American Airlines Group Inc. (formerly known as AMR Corporation (referred to as “AMR” prior to December 9, 2013) and referred to herein as “AAG”) as a result of the merger (the “Merger”) of AMR Merger Sub, Inc., a wholly owned subsidiary of AAG, with and into USG. Also on the Effective Date, AMR, its principal subsidiary, American Airlines, Inc. (“American”), and certain of AMR’s other direct and indirect domestic subsidiaries (collectively, the “Debtors”) consummated their reorganization pursuant to the Debtors’ fourth amended joint plan of reorganization (as amended, the “Plan”) under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Prior to the Effective Date and continuing through the completion of audit services for the fiscal year ended December 31, 2013 and the filing of the 2013 Annual Reports on Form 10-K for AAG, American, USG and US Airways, Inc. on February 28, 2014, Ernst & Young LLP (“E&Y”) was engaged as the principal accountant to audit the financial statements of AAG and American (AAG and American are referred to herein together as the “American Entities”), and KPMG LLP (“KPMG”) was engaged as the principal accountant to audit the financial statements of USG and US Airways, Inc.

Subsequent to the Effective Date, the Audit Committee of the Board of Directors of AAG (the “Audit Committee”) conducted a process to select a single registered accounting firm to conduct the audit of AAG and its subsidiaries, including USG and US Airways, Inc., commencing with the fiscal year ending December 31, 2014. On February 25, 2014, the Audit Committee approved the appointment of KPMG to act as the registered accounting firm of AAG and its subsidiaries commencing with the fiscal year ending December 31, 2014. On February 28, 2014, AAG advised E&Y of its determination and that it would be terminating its engagement with E&Y effective as of the date of E&Y’s completion of audit services for the fiscal year ended December 31, 2013 and the filing of the 2013 Annual Report on Form 10-K of AAG. Also promptly after the Audit Committee made its determination, AAG engaged KPMG as its new independent registered public accounting firm to perform audit services beginning with the fiscal year ending December 31, 2014.

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