Tag Archives: Doug Parker

American Airlines Group Reach Agreements with Union

Transportation Industry, , ,
American Airlines Group
American Airlines Group

Three collective bargaining agreements have been reached between the new American Airlines Group and its employees at US Airways. American Airlines Group was formed in December when Fort Worth, Texas-based American Airlines merged with US Airways. The agreements were reached with mechanics, fleet service and maintenance training specialists, who are members of the International Association of Machinists.

According to American Airlines Group the agreements will stay in effect with the US Air workers until a collective bargaining agreement which includes all 30,000 of the Group’s employees is reached.

“We are pleased we have reached these agreements,” Doug Parker, chairman and CEO of American Airlines, said in a statement. “These agreements will allow us to focus on the next steps for integrating our airlines, and we can now start the process of bringing these employee groups together with their co-workers from American through joint collective bargaining agreements.”

Justice Department Approves Giant Airline Merger

Transportation Industry, , ,
Doug Parker CEO of US Airways
Doug Parker CEO of US Airways

A new mega-airline company will be created when American Airlines and US Airways take advantage of the Department of Justice’s decision to allow the two companies to merge, making them the world’s most expansive airline.

Last August the US government tried to prevent the merger, claiming competition would be restricted, causing ticket prices to rise on hundreds of routes around the country.
The airlines counter that this deal actually will increase competition now that there is a real competitor to United Airlines and Delta Air Lines, two companies which recently grew after their own mergers.

Tuesday’s settlement with the Justice Department still requires the approval of a federal judge in Washington, DC. One requirement of the agreement is that American and US Airways will need to give up their take-off and landing rights at Reagan National in DC and La Guardia Airport in New York. They will also need to give up some of their gates at airports in Boston, Chicago, Los Angeles, Dallas and Miami, allowing low-cost carriers to have them. This move is to offset the impact of the merger on smaller airlines, increasing competition.

Eric Holder, the attorney general, said that the agreement would increase competition on nonstop and connection flights all over the country. The Justice Department said that the relinquishing of gates and routes at the country’s major airports by the newly merged entity was a “groundbreaking” move.

US Airways Chief Executive Doug Parker, who will head the newly merged company said,

“This is very good news and we are grateful to all who have made it happen.”

He added his thanks to politicians and business leaders who supported US Airways and helped push for the merger. The companies are expected to complete the move to merger in December.