This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

US Airways CEO: Everybody Wants a Merger Except for AMR Bosses

CHARLOTTE, N.C. ( TheStreet) -- US Airways (LCC) CEO Doug Parker said his effort to merge with bankrupt AMR (AAMRQ.PK) has backing from every major constituent except for one -- senior management at American Airlines.

Speaking Wednesday at the National Press Club in Washington, D.C., Parker said Wall Street, bondholders, the media, and the airline's employees support the merger effort. Leaders of American's three biggest unions, which represent 55,000 workers, attended the session in a display of support.

"I find it noteworthy that the only opposition that seems to exist to this merger is (from) the senior management of American Airlines," Parker said. "I don't want to guess as to why it is they don't support it. We are hopeful we can get their support at some point in the future."

Parker noted that he began his career at American -- "I've been there myself and I love that brand" -- and that AMR CEO Tom Horton "and I are friends and have been friends for a long time. Hopefully, when this is over, we'll remain friends.

"It's a business disagreement," he continued. "None of this is remotely personal."

Parker said he is satisfied with the process Horton announced last week, after meeting with the creditor's bankruptcy creditors committee. It involves evaluating mergers with five airlines including US Airways.

However, Parker quoted Bob Dylan as saying, "You don't need a weatherman to know which way the wind blows." He said "analysis just complicates the situation. You don't need all of that to tell you what you already know. You already know what the right answer is. Everyone on Wall Street knows it.

"Cut through the noise and the process and get to the substance," Parker said. "Don't wait. There are 100,000 jobs at stake here." Workers would benefit from being employed by a carrier big enough to compete with Delta (DAL - Get Report) and United (UAL - Get Report), he said.

The battle over the merger effort seemed to reach a new level of intensity on Wednesday. Early in the morning, American reported improved second-quarter financial results. It has trumpeted its improving financial results as an indication that it doesn't need a merger to be successful.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
DAL $41.41 -3.50%
UAL $45.56 -3.30%
AAPL $94.30 -0.92%
FB $118.08 0.55%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs