US Airways: Merger with AA might make sense

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Published: March 22, 2012

US Airways 767-200. Courtesy, US

US Airways (US) continues to explore whether a merger with American Airlines (AA) would be a good move, but consolidation is not a strategic necessity, US chairman and CEO Doug Parker said Wednesday.

Parker described talks about a potential merger with AA, which is operating under Chapter 11 bankruptcy protection, as rumors and speculation ( ATW Daily News, March 2 ).

“Industry consolidation has happened and so the result is that we have a much more rational industry now. So the strategic necessity to consolidate is not there anymore. US Airways does not need to merge. Our results prove that and we have a model that works in a consolidated industry,” Parker told media during a company briefing in Phoenix, Ariz.

“Having said that, it might make sense to do something. It could be in our best interests to have a bigger airline with stronger revenues and it could give us more stability. And because it might make sense, we are looking at it,” he said.

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