Why US Airways Wants a Deal with American
CHARLOTTE, N.C. TheStreet) -- AMR's (AMR) bankruptcy filing is no doubt viewed as an opportunity by US Airways (LCC), which has long seen a merger with a major carrier as the best way to assure its long-term survival.
US Airways CEO Doug Parker has said frequently that bankruptcy court is the best place to accomplish a merger, because a filing enables reductions in labor costs and reduction or elimination of lease costs for aircraft, airport space and office space.
In the past seven years, Parker has bid for four airlines, three of which were in bankruptcy. In 2004, as CEO of America West, he bid for bankrupt ATA. In 2005, he oversaw a merger with bankrupt US Airways.
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