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Former American Airlines CEO Bob Crandall argues a merger between American Airlines and US Airways will increase competition.
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One of the other real big stories today this eleven billion dollar merger between US Airways and American Airlines some big changes stuff for the airline industry and Bob Crandall who knows that.
I think or -- about all of this the former CEO at American Airlines parent AMR joins us right now.
On the telephone I'd like to just at least short Bob with your your personal reaction initially to the deal.
Well I state -- colonists McConnell given the given the events of the last -- ten years I think I think this deal makes a lot of sense American.
They shrunk a good deal away in an effort to remain competitive despite high costs.
And their footprint now is smaller than it needs to be to compete with -- -- united.
So when you put US air America together I think you're gonna have.
Third major competitor that work better.
The -- to compete dead effectively -- Give it to save money you read video if you combine -- I think the annual savings plus the new revenues -- -- billion dollars annually by 2015%.
That's the money side of it the other big picture question is where are we headed whereas the airline industry.
-- when you combine these two -- -- -- this every time there's a big merger but at some point you run out of big airline.
So well I think well I think you've about run out now that probably effective what you're gonna happen is for -- -- -- gonna have united delta.
America's southwest.
You've got you've got.
Part of June niche carrier is Betty it is -- -- all clear that there is any further consolidation that basically says prove.
-- see as time goes by.
But my guess is what you're now seeing is pretty much the structure of the industry that -- decade as.
Oh okay that's interest -- because that would be kind of a rare.
String of stability and into -- -- a decade out with a note that -- punitive one the mean.
But also there's this boy -- hello everybody big airline merger seems like we have one in every couple years have been one.
Well that's right there anyway dad was a string of bankruptcies and right as they came out of bankruptcy its series of -- it's about what Hussein is.
That stability is beginning be generated at least modest profits for the airline industry and that's good for everybody good for the economy good for consumers.
If our airlines are going to be competitive they can't lose money if.
Why some good for consumers -- ticked up part of it.
But I expect to consumers because I don't think consumers -- to file an old airplanes.
I don't think they wanna -- and companies that are perpetually losing money.
And dust perpetually at war with their employees aren't I don't think they want to have to use a system where airlines -- Constantly canceling destinations.
Offering fewer flights.
Adding more and more seats and so sure -- the fact of the matter is business that is able to make at least.
The sensible profit at least get a better furniture turned they've earned its classic capitalist a much better industry do businessmen.
You hear complaints all the time of course about a couple of different things one would be service and the others sometimes -- -- cost will this how will this merger affect those things for the consumers.
Well I think if anything it it'll probably.
It in -- in -- -- have very little impact fiance is.
I don't think it'll take one way -- -- a -- -- in terms of service hopefully.
Because she US air the new American will be better able to compete with the -- service or get a little better.
Bob Crandall one of the -- veterans of the airline industry and I'm certainly I'm I'm -- as he said that a person would have a personal interest in reaction to this story thanks a lot for calling in appreciate your corporate.
