Tags: us airways | amr | airline | m&a

US Airways CEO: Advisers Still Studying Merger With AMR

Wednesday, 21 March 2012 06:43 PM

US Airways Group Inc. Chief Executive Officer Doug Parker said the carrier’s review of a possible merger with American Airlines parent AMR Corp. remains in progress and probably won’t be resolved soon.

“We have disclosed that we have hired advisers to investigate the American situation,” Parker told reporters Wednesday in Phoenix. “That work continues. I suspect it will for quite some time.”

Parker said a tie-up with American, the third-largest U.S. airline, might be beneficial to No. 5 US Airways without being a necessity for the smaller carrier’s survival. He confirmed Tempe, Arizona-based US Airways’ interest in AMR in January following that company’s Nov. 29 bankruptcy filing.

“Consolidation is no longer an industry imperative,” Parker said. “I was, for a long time, advocating industry consolidation. It’s happened. US Airways does not need to merge. At the same time, it always could be in our best interest to do something that would result in a bigger airline with stronger revenue.”

Travel demand since the start of the year has been strong, and bookings have rebounded from an unexpected slowing close to the day of travel that occurred in February, President Scott Kirby said at the meeting with reporters.

Shares of US Airways rose less than 1 percent to $7.75 at 3:02 p.m. in New York trading.

“The economy feels like it’s on a firmer footing,” Kirby said. “We are cautiously optimistic.”

The outlook for the company’s performance for the full year is uncertain because of rising fuel prices, Kirby said. Jet-fuel for immediate delivery in New York Harbor has climbed 10 percent to $3.29 a gallon this year through Tuesday.

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Wednesday, 21 March 2012 06:43 PM
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