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American Airlines CEO states merger has potential to change the industry landscape

5-May-2010 1:48 PM

American Airlines CEO, Gerard Arpey, stated the merger of United Airlines and Continental Airlines has “the potential to change the industry landscape" and could create a “balance between industry supply and demand” (Star-Telegram, 03-May-2010).

American Airlines:Today the airline industry is both highly fragmented and financially unhealthy. We have worked hard in recent years to lead the industry toward a more disciplined approach to managing capacity - in other words, not offering more product than is justified by marketplace demand. A combined United/Continental would mean one fewer choice and may result in a better balance between industry supply and demand, potentially resulting in a more rational competitive environment.” Gerard Arpey, CEO of American Airlines. Source: Star-Telegram, 03-May-2010.