U.S. Airways Looks At Merger With American Airlines
A potential merger has been the subject of speculation since American Airlines filed for bankruptcy in November. U.S. Airways CEO Doug Parker brought up the issue in a conference call to head off reporters and analysts waiting to ask about a merger. "We can now decide if it's best for U.S. Airways to operate as a stand-alone company, or participate in further consolidate over time, and that's what we intend to do," Parker said. Parker announced that U.S. Airways has retained Barclays Capital and two other firms to explore a merger with American. U.S. Airways is the nation's smallest full-service carrier; American the third-largest. Parker has often cited a need from more consolidation in the airline industry, but says he doesn't expect a final decision on a merger for "quite some time." U.S. Airways reported a fourth-quarter net profit of $18 million. The company's net profit was $28 million for the same period last year.