June 10 The new American Airlines will be run
largely by the current management of US Airways Group
when the carriers merge to form the world's largest airline.
American parent AMR Corp and US Airways on Monday
named eight executives to top posts at the merged company on
Monday, five of whom are already on the management team of Doug
Parker, the US Airways chief executive who will run the new
company as CEO.
Parker "is confident that his team can manage the combined
enterprise," said George Hamlin, an aviation consultant in
Fairfax, Virginia. "Time is going to tell."
Scott Kirby and Derek Kerr, the current president and chief
financial officer of US Airways, respectively, are to hold those
same jobs in the new company, which will be named American
Airlines Group and based in Dallas-Fort Worth, Texas, the
current AMR headquarters.
Also from US Airways, Elise Eberwein will head
communications of the new American; Robert Isom will be in
charge of airline operations; and Stephen Johnson will run
Three executives from American Airlines will have top
management roles at the merged company. Beverly Goulet will lead
integration and Maya Leibman was named chief information
officer. William Ris will manage government affairs.
EX-BOEING EXEC ON BOARD
The companies, looking to complete their $11 billion merger
by the end of September, also said the new carrier would have 12
directors, including James Albaugh, a former CEO of the
commercial airplanes division at planemaker Boeing Co. At
least five board members have financial and investment
The companies had previously said current American Air CEO
Tom Horton will be chairman of the new company through its first
annual meeting. Then, Parker will take over.
Among the executives who will be departing the new company
are Dan Garton, president of American Eagle; Bella Goren,
finance chief at American Airlines; and Virasb Vahidi, American
chief commercial officer, the companies announced.
The tie-up would be the fourth major merger in the U.S.
airline industry since 2008, when Delta Air Lines bought
Northwest. AMR creditors would receive 72 percent of the equity
in the new American, with US Airways' current shareholders
getting 28 percent.
The new, larger American Airlines would return to the
leadership position among U.S. carriers that it ceded in recent
years as high labor costs made it difficult to compete with
restructured rivals. AMR filed for bankruptcy in 2011 and
initially opposed a merger, but agreed to explore one under
pressure from creditors and unions.
In an annual study of airline quality released in April, US
Airways ranked ninth out of 14 U.S. carriers examined, while
American ranked 10th. Those rankings, released by researchers at
Purdue and Wichita State University, were based on U.S.
Department of Transportation figures for on-time arrivals,
mishandled baggage, customer complaints and other categories
Hamlin, the aviation consultant, said naming the management
team early in the merger process was essential to get
integration off to a good start. The new American will have to
meld reservations, IT infrastructure and other intricate
systems, tasks that have complicated other airline mergers.
"The sooner you know who's going to be in charge and what
they are going to do, the better," Hamlin said.
Shares of US Airways were up 1.5 percent to $17.27 in early
afternoon trading on Monday.