5-May-2010 1:48 PM

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

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.

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