AMR CEO envisions American as a 'consolidator'

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by BYRON HARRIS

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WFAA

Posted on February 6, 2012 at 4:17 PM

Updated Monday, Feb 6 at 4:51 PM

A weekend statement by American CEO Tom Horton has people talking.

He indicates instead of American Airlines' parent company being the target of a buyout it might be in the position to do the buying.

Horton met with Bloomberg on Friday and both the Dallas Morning News and Star Telegram editorial boards late last week.

He told Bloomberg that American could be a consolidator after it emerges from bankruptcy.

In other words, AMR could initiate a merger with another airline.
   
There's too much capacity in the airline industry.  Airlines have realized this by cutting flights over the last couple of years, trying to make the planes they do fly fuller.
   
Another way reduce capacity is consolidate airlines like United in its merger with Continental.
   
U.S. Airways has talked about taking over American, but Horton said last week that would not make sense.
   
Any takeover talk of American by another airline has to be balanced with the reality that for any takeover to occur, American's plan for its own reorganization must first fail.
   
A takeover can't happen until after that.
 

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