The airline industry is included in cyclical transportation, which we assess as having high industry risk; AAG is the largest U.S. airline after the Dec. 9, 2013, combination of AMR Corp. (parent of American Airlines Inc.) and US Airways Group Inc.; A weaker Pacific route network than its major competitors; Expected substantial revenue synergies and overhead cost savings from the merger; and Higher labor costs and $1.2 billion of merger integration expenses through 2015. Expected rising revenues and modestly improving margins; Incremental debt or leases to finance substantial capital spending commitments for new aircraft; and Gradually improving funds from operations (FFO)-to-debt and free operating cash flow (FOCF)-to-debt ratios. The stable outlook reflects our expectation that AAG's financial profile will remain
