U.S. Airways CEO Really Wants To Get His Merge On With American Airlines

To date, the folks at U.S. Airways have been quite coy about their intentions regarding a possible marriage to struggling-but-adorable American Airlines, saying things like “we’re not opposed,” and that they “wouldn’t rule it out,” but all that double talk may have ended with the latest hot-and-heavy chatter from U.S. Airways’ CEO.

After receiving the blessing of three of American’s labor unions regarding a possible merger, U.S. Airways’ Doug Parker put on his best Barry White voice and said that hooking up with American while it works its way out of bankruptcy, “represents a unique opportunity that we should not ignore.”

Is it getting hot in here?

“To get to an actual merger, many things must happen, including gaining the support of AMR’s creditors, its management team and its board of directors,” Parker told his employees in an e-mail. “But this is obviously an important first step along that path and we are hopeful we can all work together to make this happen.”

Lest anyone thing that American is looking to get married just to stave off insolvency, the company says that all the merger talk from the unions and U.S. Airways “do not in any way alter the company’s commitment to pursue our business plan or our focus on moving steadily through the restructuring process.”

Isn’t it cute how American pretends to be single and independent when we all know these two are just going to walk down the aisle in the final act?

US Airways CEO Talks Up Merger [WSJ.com]

Comments

Edit Your Comment

  1. MrMagoo is usually sarcastic says:

    I think Chris has been looking at the Oreo picture a little too long.

  2. Fumanchu says:

    Just what we need… further monopolization of the US air travel market. Also… where the hell is US airways even getting the capital to do this?

    • aerodawg says:

      Whether you like it or not, historically the US Airline market has been unable to support the number of large carriers we’ve had, that’s why they’ve gone bankrupt time and time again and why the industry as a whole has lost money over it’s history. Too many airlines means too much capacity which means seats get deeply discounted or worse remain unsold and you can’t make any money. Consolidation coupled with a lot more discipline has lead to capacity being much more in line with demand leading to much more consistent capability to turn a profit.

      As for your question, there’s talk there may be a 3 way deal between US Air and British Airways. BA can’t hold a majority stake in a US airline but they could provide some working capital that would assist US in acquiring American in return for some non-majority stake in the resulting entity. This would let US Air get out from under United’s shadow in Star Alliance as they transition to OneWorld….

  3. GaijenSoft says:

    I expect an invite to the wedding.

  4. defectiveburger says:

    I hope I am never in a position to receive dirty talk from Chris. Awkward. :)

  5. Blueskylaw says:

    I truly support this merger. We cannot possibly have enough too big to fail companies and the synergies of reducing competition through mergers ALWAYS results in lower prices for the consumer. After all, why go through the hassle of a merger if not for the benefit of the customer?

  6. consumed says:

    I flew US Airways once and never will again…

    AA, however, I have flown on multiple times and never had any complaints. Except those “Stupid 80″ (MD-80) aircraft they acquired from TWA I’ve been on are freakin old and need to be retired.

    I only see this deal as a blow to consumers, with higher fares and many routes eliminated, meaning more people crammed into crappier planes with more delays. Uggggh!! This insanity never ends.

    • consumed says:

      And I forgot to say I’ll probably be more likely to drive my car or take Amtrak to my destination than to fly either US Airways or the new combined company.

      • Onesnap says:

        some of us don’t have a choice for work.

        oh and also American Airlines is one of the worst right now.

        They destroyed a suitcase a few weeks ago of mine and I have no way of having them pay because they are blaming TSA because the bag was searched.

    • jimbobjoe says:

      It is my recollection that the MD-80s from TWA are the newer ones. AA had hundreds of MD-80s before TWA entered the picture.

      • Fumanchu says:

        yeah the old md-80s are from before the merger. I hate flying on the MD-80s. Boeing planes are the best.

        • cromartie says:

          I can confirm that the MD80s acquired from TWA were the newer ones. AA had the older ones.

          But to correct one thing, when Boeing acquired McDonell-Douglas, they refashioned the MD80 into the 717. I really enjoy those planes, and refuse to fly anything smaller. They should have been a competitive small/mid range plane instead of the Embrarer, but they are so much worse on fuel that Boeing phased them out.

          As for AA/US, my rule of thumb with flying still stands: don’t connect through O’Hare, ever.

          • Egregious Philbin says:

            No, the 717 was the MD95, Boeing changed the name of the craft. It was a fully McDonnel Douglas product. It is a great plane, but a niche plane, works great in the markets it serves.

            The MD80’s are long in the tooth and need to go, the Fokkers are all gone, never liked them. Pilots called them “Lawn Darts”

  7. AllanG54 says:

    But meanwhile AA has ordered 480 new planes from Airbus and Boeing so I guess if there’s a merger those orders will be shot to hell. And even if they don’t merge where is AA going to get the money to buy the planes. So, I guess those orders will be shot to hell.

  8. CommonSense(ಠ_ಠ) says:

    …Because even less competition is always better.

  9. Warren - aka The Piddler on the Roof says:

    The guy in that photo looks like he just tried to sneak a silent fart and shit his pants.

  10. Onesnap says:

    I have a horror story this week. Only this time it involves Continental Airlines. (merged with United). I only got 2 hours of sleep in 2 days thanks to Continental (checked into my hotel that I already paid for in order to take a 2 hour ‘nap’ before a meeting after spending a night in Continental hell). The state of all airlines in the US right now is a bit terrifying. The plane I was in had an engine failure (right before takeoff, and that was after a series of 2 delays in two different cities). I fly a lot, but this week was horrible. Horrible. I don’t care if it’s school vacation week.

    Mergers spell bad business for airlines.

    Virgin America is the only good airline in the US right now.

  11. gman863 says:

    Here are today’s MBA exam questions:

    “US Airways takes over American Airlines”

    Question #1: Looking ahead ten years, the US Airways purchase of American will be viewed as the best acquisition since

    1. Kmart acquired Sears
    2. BoA acquired Countrywide
    3. The Justice Department acquired Enron
    4. Who cares? RyanAir and Spirit will have purchased the remains in Bankruptcy Court.

    Question #2: What would be the best ad campaign to announce such a merger?

    1. “US Airways – We’ve always sucked. Now we’ve swallowed.”
    2. Mike Myers dressed as Fat Bastard in a US Airways flight attendant uniform crashing into AA’s boardroom while yelling, “GET IN MAH BELLY”!
    3. A TV commercial showing business travelers committing mass suicide.
    4. Something scrawled in crayon on the airport bathroom wall.

  12. alexwade says:

    “U.S. Airways CEO Really Wants To Get His Merge On With American Airlines”

    And the 3 unions representing the employees of American Airlines want to get their merge on with US Air. It seems like the only one who doesn’t want to be a part of this menage-a-cinq is the American Airlines management.

  13. Press1forDialTone says:

    When businesses don’t really compete (studies show it takes at least 5
    nearly same sized businesses), the service will go down down down and
    the CEO pay goes up up up and the stockholders get screwed and I almost
    forgot, the paying passengers really get screwed. Take the train, don’t drive,
    have a teleconference anything but fly.

  14. Peri Duncan says:

    US Airways has not yet cleaned-up the mess created by its last merger! And a big mess it is. Now lets throw a third group of employees into the mix who are getting screwed and don’t like it. Get your current house in order before taking on another massive blended-family problem.

  15. Egregious Philbin says:

    USAirways is an odd place now, I worked at America West for a long time, it was America West that took over US, but they kept the US name (big mistake, should have made new name). The US pilots and the AW pilots were in the same union, but the US pilots wanted seniority to go by date of hire, and for their long furloughed (some as long as 10 years) to retain all that seniority. Of course, AW pilots said no, they reached an impasse and all sides went to binding arbitration and agreed to live with the results. The arbitrator slotted the AW pilots in with the US pilots in a very fair manner. The US pilots wouldn’t stand for it, so they decertified the union (there were more US pilots) and formed another union to try to get out of their agreed arbitration. 5 years later, its still being fought, but the US pilots have lost every battle so far and they will finally lose. The funny thing is, now the US pilots that want date of hire will become the minority….and of course they are changing their tune….

  16. w says:

    Cancel a flight and instant cash for other purposes. Walked thru the A/P in Charlotte on 5APR and there were in excess of a dozen cancelled flights. A thunder burst moved thru the area and left thousands stranded because US Air was doing absolutely nothing for the customers with whom they breached their contract to get them on to their destination… Thank goodness I was within 2 hours of home and have a lovely bride willing to travel to retrieve me. My air carrier sure wasn’t about to lift a finger…. US Air stinks up the air they fly in…