US Airways executives push for a merger with American Airlines
Updated: Updated 06/14/2012 05:00 PM
By: Adam Rhew
CHARLOTTE – The CEO of US Airways says merging with American Airlines would create a powerful carrier.
"An airline that could compete with anyone. It could be the best airline in the world," chief executive Doug Parker said during his annual shareholders meeting Thursday.
Parker once again made the case for combining the two companies to create what would become the largest airline in the world.
"If you put these two networks together, they're highly complementary," he said.
American is currently in bankruptcy. Parker says American's market position eroded because it refused to consolidate.
"They can't fix this because it's a structural weakness,” he said.
UNC Charlotte business professor Peter Schwarz says the merger probably will happen.
"It's a good deal for American,” he said. “It means fewer jobs lost, better contracts for employees."
If the deal happens, Schwarz believes it would be generally positive for North Carolina.
"We gain more than we lose by having a larger network of routes that we can choose from," Schwarz said.
But he said less competition means higher fares for fliers.
"That's pretty inevitable," said Schwarz
During the investors meeting Parker said employees would benefit from the merger.
"That's what gets us excited about this," he said. "An airline with this type of revenue generating capability can do more for its employees than either of these two airlines could do independently."
But US Airways has to be patient. American has until September to propose a merger without interference from outside companies.
"This is a process supervised by the bankruptcy court. It's got it's own rhythm, it's own pace. We at US Airways fully respect and understand the process," Parker said.
US Airways could ask for government approval of a merger as early as next month.
A green light from antitrust regulators would remove one possible hurdle to an American-US Airways deal.
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