As he has done on previous earnings call, US Airways chief executive Doug Parker gave analysts and investors a brief update of where the carrier stands in respect to its push for a merger with AMR Corp.
Parker did not comment on recent media reports where AMR chief executive Tom Horton said US Airways needed a merger more than AMR.
Here is the full text of what he said on the call:
As evidenced by our record second quarter results and how well they compare to the other airlines, it’s quite clear that US Airways has a great business model that works and we certainly don’t need to merge with another airline. However, we do believe a combination of US Airways and AMR is in the best interest of both AMR and its stakeholders, US Airways and its shareholders, and the employees of both companies. All three of American’s unions representing over 55,000 employees agree and support a merger of AMR and US Airways. Last week, APFA joined APA and TWU in sending AMR’s offer to its union members for a vote. If, as the three unions and we have been advised, those labor agreements are a prerequisite toward the AMR strategic alternatives process to move forward, we welcome those efforts.
AMR recently announced they would open merger talks with interested parties in the near future and has indicated that it is actually open to considering mergers while in bankruptcy. That would be a dramatic and welcome shift from the company’s posture during the last eight months and we are anxious to learn more about the process. We’re hopeful there will be a meaningful, fair and transparent process which AMR will evaluate its merger options because we’re certain that any objective analysis will conclude the best plan for the creditors, employees and customers of AMR is a merger with US Airways during the bankruptcy process.
So, we’ve been told we will receive a non-disclosure agreement, or NDA, shortly and we believe that’ll provide a first assessment of AMR’s intention with respect to the review of strategic alternatives. But after reviewing the NDA, it turns out that this is not the start of the full and fair process we hope for, we’ll have to evaluate our options to ensure that the real parties and interests – AMR employees and creditors – get the chance to evaluate the merits of an AMR-US Airways merger. So that’s where we are. We are currently awaiting more details of the process and we will know much more about next steps after that happens. Irrespective of what we learn, we believe we’ll ultimately be successful in combining AMR and US Airways and the result will be the creation of the best airline in the world. That’s what the employees and the owners of both companies want and we don’t intend to let them down.