American Airlines CEO Doug Parker told CNBC's "Power Lunch" on Thursday that there are several signs the industry is bouncing back, providing welcome news for both consumers and investors. Parker said that American is investing in its employees and increasing pay.
Doug Parker, CEO of American Airlines, outlined why transformational air traffic control reform is essential toward making flying better for everyone, while saying that politics should not interfere with changes that are needed for the good of the traveling public. "There is simply nothing radical or unusual about this proposal. More than 50 other nations have moved to this concept in one form or another -- some decades ago," said Parker. "To ensure our system is the gold standard for safety and technology, we must embrace change and put aside turf wars by working together for the greater good of the system," he continued.
In a recent interview about the new American Airlines, CEO Doug Parker said: "We take two airlines -- and put them together -- with networks that are highly complementary. Of the 900 routes that are flown between American and US Airways, only 12 of them there's any overlap. It provides the ability for us to take customers to places that neither airline can today by connecting those two networks." When asked to comment on whether fares will increase as a result of the merger, he said: "In this case, we're putting together two airlines that are highly complementary and not reducing the supply of seats. So nothing about this merger should affect prices."
The American Airlines-US Airways merger closed today, and CEO Doug Parker said the merger will benefit customers by creating more efficiency in the industry. The new American will be one of three legacy airlines, along with Delta Air Lines and United Continental. "The three of us have now the ability to take people pretty much anywhere in the world,” Parker said. “What used to be a business where it was purely on schedule, if you have the ability to take people everywhere, you compete on product. And we're prepared to do that." He also downplayed concerns that the merger would lead to higher fares. "Airline prices are like prices in other businesses -- they track with supply and demand, and we're not reducing any of the supply," Parker said.
US Airways CEO Doug Parker said no decision has been made yet on keeping recent American Airlines branding. American revamped its logo and livery in January, a month before the US Airways-American Airlines merger was announced.