American and US Airways CEOs Discuss Merger
American and US Airways’ CEOs say the companies’ merger won’t result in many layoffs.
“We have only 12 overlapping routes out of some 900 or some that we fly together,” said American’s CEO Thomas Horton. “We expect very little redundancy in the operations.
He says most layoffs that do occur will likely be in management, as the two companies consolidate leadership.
US Airways’ CEO, Doug Parker, will assume the role of CEO of the new company. Horton will stay on as chairman of the new joint Board of Directors, but only until the merger is complete.
The two appeared together in a news conference this morning to answer questions about the merger.
“Together American Airlines and US Airways will serve more than 187 million passengers a year,” Horton said, “and employ more than 100 thousand people.”
Horton and Parker said they don’t expect combining the companies to result in significantly higher fares, or to cause the new company to be subject to anti-trust litigation.