- Mar 29, 2004
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I think USAirways chairman, president and CEO Doug Parker really want to merge with Northwest Airlines since he spent four years with Northwest Airlines as vice president and assistant treasurer, and vice president of financial planning and analysis in 1991 to 1995.
US Airways CEO talks consolidation
news reporter from Pittsburgh Post-Gazette
Could US Airways boss Doug Parker be thinking about a merger - again?
Fresh from creating the nation's fifth-largest carrier last fall with the union of the old US Airways and America West Airlines, the boyish-looking chief executive officer admits that consolidation is still on his mind. He hints that the most attractive combinations for US Airways could involve Delta Air Lines and Northwest Airlines.
Both of those carriers are still in bankruptcy, and, as US Airways learned in 2003 and 2005, both will be able to drastically reduce costs by giving unneeded airplanes back to lenders or renegotiating labor contracts - making either company more attractive to potential partners.
As Delta and Northwest get closer to emerging from bankruptcy, they may look for a merger partner on the way out, as US Airways did in 2005, and if that happens "we will be there to talk to them," Parker said.
Talk of more mergers in the U.S. airline industry is heating up again as the major carriers recover from five years of extreme pain and more than $30 billion in losses. One good sign is that the newly-merged US Airways made money in this year's first quarter despite the soaring costs of oil and jet fuel.
Still, even with the many cuts among major carriers and Independence Air's going out of business, some observers argue the industry needs more cutting and consolidation, saying it will make the remaining carriers healthier. "Basically, we still have too many seats, too many hubs and too many legacy carriers," said Ray Neidl, an airline analyst with Calyon Securities in New York.
United Airlines, Delta, Continental Airlines and US Airways are all interested in more consolidation, according to longtime Virginia airline consultant Darryl Jenkins, who advises carriers around the country.
Both Delta and Northwest would fit well with US Airways' existing network, some said. Both would give US Airways a stronger international presence, with Delta strong across the Atlantic and to Latin America and Northwest owning prized routes to and from the Far East.
Colorado airline consultant Mike Boyd claims Delta is not interested in a merger. "The chairman of Delta told me that they are not."
Nor would a merger of Delta and US Airways make sense, he said, calling it a "major mess" bringing together fleet types and unions that are too different.
US Airways CEO talks consolidation
news reporter from Pittsburgh Post-Gazette
Could US Airways boss Doug Parker be thinking about a merger - again?
Fresh from creating the nation's fifth-largest carrier last fall with the union of the old US Airways and America West Airlines, the boyish-looking chief executive officer admits that consolidation is still on his mind. He hints that the most attractive combinations for US Airways could involve Delta Air Lines and Northwest Airlines.
Both of those carriers are still in bankruptcy, and, as US Airways learned in 2003 and 2005, both will be able to drastically reduce costs by giving unneeded airplanes back to lenders or renegotiating labor contracts - making either company more attractive to potential partners.
As Delta and Northwest get closer to emerging from bankruptcy, they may look for a merger partner on the way out, as US Airways did in 2005, and if that happens "we will be there to talk to them," Parker said.
Talk of more mergers in the U.S. airline industry is heating up again as the major carriers recover from five years of extreme pain and more than $30 billion in losses. One good sign is that the newly-merged US Airways made money in this year's first quarter despite the soaring costs of oil and jet fuel.
Still, even with the many cuts among major carriers and Independence Air's going out of business, some observers argue the industry needs more cutting and consolidation, saying it will make the remaining carriers healthier. "Basically, we still have too many seats, too many hubs and too many legacy carriers," said Ray Neidl, an airline analyst with Calyon Securities in New York.
United Airlines, Delta, Continental Airlines and US Airways are all interested in more consolidation, according to longtime Virginia airline consultant Darryl Jenkins, who advises carriers around the country.
Both Delta and Northwest would fit well with US Airways' existing network, some said. Both would give US Airways a stronger international presence, with Delta strong across the Atlantic and to Latin America and Northwest owning prized routes to and from the Far East.
Colorado airline consultant Mike Boyd claims Delta is not interested in a merger. "The chairman of Delta told me that they are not."
Nor would a merger of Delta and US Airways make sense, he said, calling it a "major mess" bringing together fleet types and unions that are too different.
