WASHINGTON _ International Airlines Group chief executive Willie Walsh came out touting consolidation – especially for American Airlines, the long-time partner of British Airways – during a speech today and had kind words for both AA chief Tom Horton and US Airways’ chief executive Doug Parker.
While Walsh stopped just short of a full endorsement of a merger between AA and US Airways, he is definitely pushing consolidation as the future of the industry.
"I genuinely believe consolidation is important," he said at the International Aviation Club luncheon in response to a question from the Star-Telegram. "There will be another round of consolidation. American will beat the center of that."
He then said that Parker had "played it well" in making a merger with American a front burner issue. "Doug Parker will be at the center of that. He’s forced the issue of consolidation." Walsh said that Horton’s announcement last week that American would consider merger options even before exiting bankruptcy was evidence that Parker had succeeded in forcing the issue and later described the moves as very "aggressive."
"My interest is making sure that it the right combination for IAG," the parent company of BA and Iberia Airlines. "It’s a nice position to be in, to consider the options around consolidation."
Walsh had earlier praised American and Horton’s decision to seek bankruptcy protection last year. As for a US Airways merger with American, Walsh said, "I would not reject it. I see some merit in it. I see merit in some other consolidation options, as well."
Later, in a scrum with reporters, Walsh elaborated, saying that US Airways’ network would be advantageous with American’s.
Asked about the benefits of American merging before or after bankruptcy, Walsh cited the advantages of a consolidation after "exiting" bankruptcy. "His position in negotiations will be stronger when he’s exited," said Walsh, saying that "historically" mergers took place after bankruptcy.
"From Tom’s point of view," he said, Horton would have “a stronger hand to play. It’s more efficient. That makes a lot of sense to me."
Walsh was also bullish on a merger sticking with the Oneworld alliance. "Without question, I’m sure it will be bigger and will be better."
"I’m really optimistic about this."
Although he said it was "far too early" to predict a merger, he said he gave "credit to Doug – he’s got it on the agenda."
"What Tom said last week demonstrates that."
Although some have criticized Parker for being "aggressive," Walsh said, "If he’d done it any other way, we wouldn’t be here today."
Parker speaks tomorrow at the National Press Club.
To download Walsh's prepared remarks click here.
What else Mr. Horton needs to start working on a merger with US Airways and leave the poor old American Airliens alone for Mr. Parker and managment to return to glory? the greediness of the actual AA CEO and team is upseting in did, they dont care about AA or the future. Good that Doug Parker has this as top priority!
Posted by: Jorge | July 17, 2012 at 05:08 PM
yea right...thats exactly what doug parker has in mind fro all f us...betting dollars to donuts that aprker will cash in and make cuts by aa look likie childs play...biggr airlines have to remoce the extra and we are taregt number one...i could care less what jimmy little signed and the protectioins he is bragging about...having 20000 more workerks than united and delta means a lot are going to be sown the door
Posted by: wingman | July 18, 2012 at 11:42 AM
The SOONER this Merger is Consummated the better for not only American but for the consumer. AA's employees will NEVER Rally around Horton and morale will continue to suffer As LONG as Horton is at the helm. Parker was groomed at American and was there when AA was at The Top......He is Determined To make it Happen and has a Vision on What Needs to be Done. Horton......No Clue.
Posted by: reece | July 18, 2012 at 01:22 PM
Wasn't Tom Horton "groomed" along with Doug Parker? According to Parker, they are still friends. Reviewing the history of Parker's last merger, it sounds as if many of his employees don't trust the guy at all. Perhaps one should be aware of those cut from the same cloth instead of offering blind support out of spite.
Posted by: Davis Barnes | July 18, 2012 at 05:50 PM
These comments are vanilla. Walsh seems to know he has a good thing going with American and doesn't want to screw it up merger or no merger
Posted by: Wings367 | July 18, 2012 at 09:51 PM
America come alive.
Remove FAA out from under USDOT and report to a new 5-member National Aviation Commission that reports to the president.
Respectfully
Bill Shea
Posted by: William Shea | July 19, 2012 at 01:48 PM
NEX GEN will help the U.S. However total goals will not be achieved "unless" four new international airports (2 in CA; 1 in Northwest and 1 in Northeast) , are built to handle future growth.
Respectfully,
William F. Shea
Woodland, CA
Posted by: William Shea | July 19, 2012 at 01:53 PM
Easy for him to say from over in London. He doesn't have to deal with union and seniority issues if there is a merger.
Posted by: LAX FA | July 24, 2012 at 11:37 PM