Doug Parker Says American Airlines Merger "Great For Customers and Under No Regulatory Risk"
Doug Parker, the incoming CEO of American Airlines and the new Chairman of the company, Tom Horton, appeared on Squawk Box Thursday morning to discuss the new U.S. Airways (NYSE: LCC) and American Airlines merger plan. Below are some notes from the interview:
- Wants best outcome for people and customers.
- Goal is to keep balance sheet strong, add value to the company.
- Parker thinks the industry is down to about as much consolidation in the industry as possible, and thinks its a rational size but intensely competitive industry.
Is This Deal Ultimately Good For Consumers?
- Between two airlines there are over 900 routes, and only 12 overlaps, so partnership is highly complementary.
- Creates a third very large competitor in the airline space, so sees no regulatory problems.
- Will only make new American Airlines stronger and more prepared for success.
- 60 brand new airplanes coming this year.
On Not Having Access to China/Asia
- One world provides service for American customers to get anywhere needed in Asia.
- The company will have best service to Latin America in the world.
What Happens to Our Airline Miles?
- Two airline programs will combine.
Thoughts on the Boeing (NYSE: BA) 787
- American had 42 787s on order, and other 50 on top.
- Won't be delivered until late next year.
- Confident Boeing will sort out the issues.
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