Saturday, February 16, 2013

American, US Airways merger could be all positive for North Texas, analyst says

Doug Parker has a big job ahead of him as this week's merger forms the largest airline in the world.?

Doug Parker will have his work cut out for him once the American Airlines and US Airways merger is complete and he becomes CEO of the world?s largest airline.

The current CEO of US Airways? (NYSE: LCC) first order of business will be to get the Fort Worth-based American Airlines (AAMRQ) out of bankruptcy court, which could occur by next month, travel industry analyst Henry Harteveldt said.

Then, the biggest challenge will be to establish a ?very different corporate culture? of trust, honesty, openness and mutual respect for American employees going forward. The airline needs to repair its reputation with consumers, too, by being on-time and reliable, Harteveldt said.

For North Texans, D/FW International Airport will remain a hub for the new American Airlines, so he sees nothing but positives. Travelers will have more options to go more places on a single airline, giving frequent flyers more chances to build up their miles.

?I think it will make American a genuinely stronger player,? Harteveldt said. ?It will be good for the business and leisure traveler.?

The airline will have to decide what to do with the Phoenix hub and the Tempe, Ariz. headquarters for US Airways. It could remain a vital hub for that region.

Others disagree, saying less competition means higher airfares.

Nicholas covers energy, banking and other topics for the Dallas Business Journal.

Source: http://feedproxy.google.com/~r/vertical_61/~3/ZOYYTDiTKRM/american-us-airways-merger-could-be.html

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