WASHINGTON -- US Airways CEO Doug Parker ratcheted up his campaign for a merger with bankrupt American Airlines in a speech Wednesday at the National Press Club, where, flanked by American's union leaders, he pointedly said that everyone except American's management supports a deal.
"We've taken a long, hard look at American, and we know that together we can build the greatest airline in the world," said Parker, stressing the two airlines' complementary networks. "So if a merger would benefit consumers, create a more competitive industry and bring about all these great things for American Airlines and US Airways, and if everyone who has studied it thinks it's a good idea, the question then is, 'Why isn't it happening?'"Saying that American had missed the merger wave and that US Airways has benefited from consolidation with America West Airlines, Parker said the time for action is now, while American is still in bankruptcy.Parker has been on the offensive for several months, wooing American's unions and waging a very public merger campaign. Last week, after months of touting a stand-alone strategy, American's top executives said they would consider all merger options as they continue the bankruptcy process.For the moment, Fort Worth-based American has the exclusive right to produce a reorganization plan, and it has asked the court for three additional months to do so. It is negotiating concessionary contracts with its unions and has asked a judge to reject existing contracts if it doesn't get new deals.Asked about a New York Times report that calculated that American CEO Tom Horton stood to make $20 million from a post-bankruptcy merger, Parker, who described himself as a friend of Horton's, said, "I find it noteworthy that the only opposition to the merger is senior management at American. We are hopeful that we can get their support for it at some point."American, which reported improved second-quarter results Wednesday, responded sharply to Parker's comments."Today's excellent results demonstrate that the new American is performing extremely well," the company said in a statement. "Our increasing strength positions us well to evaluate the full range of strategic options versus our reorganization plan, to maximize value for our stakeholders and deliver the best outcome for our people. This will be a disciplined process guided by the facts and will not be influenced by baseless rhetoric."American's unions are in the peculiar position of negotiating with American at the same time they are touting Parker's merger vision. But they are also his best pressure point."Ratification will be good for a merger," Parker said.He was joined at the event by Dave Bates, president of the Allied Pilots Association; Laura Glading, president of the Association of Professional Flight Attendants; and John Conley, international vice president of the Transport Workers Union.Parker asked the news media "to hold everyone's feet to the fire" because the "right answer" to American's situation is the merger with US Airways."Everyone on Wall Street knows it," he said. "The employees of American and US Airways know it. The creditors watching the bond prices know it. The media knows it. Now the public needs to know it."There are 100,000 jobs at stake here. Their fate should not be decided in the dark."Maria Recio is the Star-Telegram's Washington bureau chief. 202-383-6103