US Airways CEO says merger possible
US Airways Group Inc. chairman and chief executive Doug Parker told airline employees Thursday that more mergers, possibly one involving the Arizona carrier, could occur in the wake of Delta Air Lines and Northwest Airlines' planned marriage.
The $18 billion Delta/Northwest merger and high oil prices could push other airlines toward consolidation, Parker said in a letter to US Airways employees. US Airways is the No. 3 passenger carrier at Sacramento International Airport.
US Airways (NYSE: LCC), which merged with America West Airlines in 2005, made an unsuccessful $11 billion bid for Delta last year and could be looking at other partners.
"Our industry is far too fragmented and consolidation, if done properly, could result in a much healthier industry which would be good for our employees, our customers and the communities we serve," Parker says free credit report.com. "Rest assured if US Airways chooses to participate in any industry consolidation, we will do so because we believe it is the best interests of our employees and our airline."
Executives at Continental Airlines (the No. 7 carrier in Sacramento) said Tuesday the airline is considering "strategic alternatives" — including a merger with United Airlines — in the wake of the Delta-Northwest merger agreement. United is the second-busiest carrier at Sacramento International, behind Southwest Airlines, which flies roughly half of all passengers through the local terminals.
Filed under: money by Wolf