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AMR CEO Thomas Horton and US Airways CEO Douglas Parker on the airlines’ merger deal.
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Don't miss a -- we'll look at this it will what's it going on as you sensibly you get this often running.
You could have other -- to do with your cash could have looked at other opportunities.
This comes at a time -- a lot of companies are sitting on a lot of -- may be.
Not to the degree of apple with a 140 billion dollars with -- so many are looking at -- doing things like raising dividends buying back stock.
On the but but but not.
Not going out and adding.
On their own or expanding their own enterprises may be buying out a competitor.
Is any of this indicative board's statement on your part about the economy or about the environment.
How would you describe.
Debt -- it's less about the environment and more about the value created by combining airline networks there was no better.
Opportunity in our view for our shareholders and trust in -- merger mean used in investing and standalone growth.
Or retreat to our shareholders can create nearly the kind of value that you can create a premium to air horns two networks like this -- creating one network.
That can -- so much more is how many others is -- create a billion dollars a year in synergies.
And that goes straight to our shareholders that we could not we could not -- create that independently.
-- help from our perspective you know American we've now completed what is most successful or structured in the airline industry.
And because we've done that we were able to negotiate a deal with -- that was.
Very sensible and in fact means that the owners of American -- 72%.
Of the newly merged enterprise.
Finally your view of the economy right now gentlemen on and this notion of the president's -- -- -- a dozen of the other night that things are getting better.
That that business is back the markets are storming back.
And that in this environment.
There is more room for the government to spend there's more room for companies look forward to -- has to offer do you share that view.
Are we -- a political -- on the government spending but wouldn't it as it relates to the economy come back.
I don't feel -- it's storming back by any means but it feels like gradual.
Continued and hopefully sustained growth it's not.
It's not dramatic but it's its growth and -- we see in our industry as a result.
More more people -- disguise and that's good from here -- business.
-- Jordan and a lot of people see taxes go up now a lot of that goes into either their discretionary -- -- -- -- -- group and to purchases outright.
Will that impact -- the tax hikes that you've seen the impact.
Travelers do you suspect.
Well in general higher taxes are not good for the economy and they're not good for for discretionary spending.
But as Doug said you know and then in the near term -- what we can see the airline demand looks looks pretty robust and because.
The supply the capacity environment in the industry has been pretty tame it makes for makes for pretty healthy environment revenue environment you know on this right now.
Finally -- on on the -- -- focused on your -- right -- -- again in the somebody needs you obviously keep one eye on Washington and this idea that.
They could be on the verge of a break it down -- a couple of weeks of automatic spending cuts that kick in and they don't lose -- the -- you've heard this on nauseam.
Do you s.'s CEOs and big market in months in your own right.
Let this affects you is it noise do you is it worries and shattered -- you know.
Does it affect your business plan Odyssey didn't affect your merger announced today but.
Many of your colleagues say it does and it worries them what say you.
Well I think you control you can control and I and for Doug and I we can control the we can control the outcome of this merger and we've seen missiles an opportunity to create value for our companies.
Irrespective of the environment Washington that's what we're gonna get a.
One final line for the consumer travel airlines in this echoes back to what you said at the beginning and products of this depart -- -- view.
That the benefits of this deal will go to the corporations.
Is from the consumer trouble.
Alliance group not to consumers.
Again it's this -- growing angst among these.
Groups of the represented customers.
That there could be held a -- -- its.
Why do you think that's so rampant out there that fear is so rampant.
I don't know it certainly isn't.
Is awarded based on what's happened overtime -- industry consolidated.
As you noted.
It's been it's been good for consumers and our business and demand has grown steadily.
And it's also been good for the industry and therefore good for investors are we certainly expect it to be the case here this this -- -- this merger in particular.
For the reasons Tom -- you stated we begin to complementary networks and don't reduce any service.
And also create a third strong competitor choose to to larger ones that are out there we newspaper consumers we -- -- -- won't prevent communicates.
John and thank you for -- the time you well.
Thank you or --
