US Airways To File With Antitrust Regulators For Its Proposed Merger With American Airlines
Speaking at the US Airways Group annual shareholder meeting in New York, CEO Doug Parker added another public push towards merging his airline with American Airlines by commenting that US Airways and American would create "an airline that can compete with anyone, that can be the best airline in the world."
As first reported by TFNJ back in January, US Airways is hoping to merge American Airlines which currently in bankruptcy protection. A hearing is scheduled for June 22 for American Airlines as it tries to have the collective bargaining agreements with its unions nullified.
US Airways is reportedly planning to file anti-trust documents with U.S. Antitrust regulators as soon as July for its proposed merger with American. It has already won support from three of American Airline's unions, ramp workers, pilots and flight attendants. Additionally, it has gained support from some of American's largest creditors and gained the financial backing important bankers.
Parker also said on Thursday that a merger would make the combined carrier much stronger in areas where both are currently weak. He added that US Airways' stock price, which has more than doubled this year, has been aided by financial community support for the proposed merger.
American parent AMR Corp. has resisted merger talks and has previously stated that it wanted to stand on its own. Employee groups however have been more favorable to the merger because US Airways is offering better pay and compensation that what they would likely get it American gets their union contracts scrapped in June as American hopes for.
Shares of US Airways were up 3.3 percent at $12.37 on Thursday morning on the New York Stock Exchange.
In speaking about the merger, Parker said that the combined airline could become the best airline around and that each has deficiencies in certain areas as they have lost out of mergers that others have done to create a better route and a more profitable operation.