As merger talks progress between American Airlines and US Airways, there has been quite a bit of discussion about who should run the combined airline.
In a research note sent out on Wednesday, Buckingham Research Group analyst Dan McKenzie gave investors three reasons why he thinks US Airways chief executive Doug Parker should take the helm.
McKenzie first questioned American management's plan to grow capacity by 20 percent in the next five years after it emerges from bankruptcy, saying that strategy would hurt the whole airline industry. He then pointed out that American's labor unions do not have a favorable view of AMR chief executive Tom Horton, delivering a "no confidence" petition to Horton's office last year.
I called the Allied Pilots Association on Tuesday to ask the union what it thought of Horton possibly sticking around post-merger and they politely declined to comment.
And McKenzie's third point:
"Bondholders report the leader must have a demonstrated ability to maximize shareholder value, which is a nod to US Airways mgmt. in our view. Our view aside, we’ve had a hard time finding investors in favor of AMR mgmt, hence our conclusion is that a consensus is in favor of an US Airways led mgmt. team running the merged airline," McKenzie wrote.