American Airlines appears to be well positioned to be competitive and continue to offer cheap airplane tickets and cheap vacation packages despite the pending merger between United and US Airways, which together will create an airline larger than American.
American is well positioned in what it considers to be the most important U.S. hubs: Chicago, Dallas, Lost Angeles, and New York. We believe were strong in each of those locations and getting stronger, and therefore we are not in any way threatened by any of the conversations that are rumored to be taking place commented Gerard Arpey, Americans CEO.
Mergers are believed by many to help airlines by reducing competition and excess seat capacity. The hope is that consolidation will help airline avoid ruinous price wars. American, United and US Airways all suffered deep loses last year.
Fewer airlines will most likely help the airline industry as a whole, according to Arpey, but he has warned that consolidation alone is not the solution to all of the industrys woes. Consolidation will have no impact on volatile fuel prices and an outdated air traffic control system.
Until recently, American was the worlds largest airline. It was surpassed in size when Delta purchased Northwest. Neither Northwest or Continental were viewed by American as attractive takeover candidates since both airlines flew too many overlapping routes with American.
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