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Doug Parker Says American Airlines Merger "Great For Customers and Under No Regulatory Risk"

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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:

General Notes:


  • 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.

Posted-In: American Airlines Doug Parker Tom HortonCNBC News M&A Media Trading Ideas Best of Benzinga

 

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