American Airlines CEO, Gerard Arpey, claimed the proposed merger between United Airlines and Continental Airlines would allow the aviation industry to benefit from less competition and potential capacity cuts (Reuters, 19-May-2010). Mr Arpey went on to state American has a labour cost disadvantage of USD600 million after restructuring outside of bankruptcy unlike a number of US carriers. [more - Association of Professional Flight Attendants response]
American Airlines: “A combined United/Continental would mean one fewer choice in the marketplace, 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: Reuters, 19-May-2010.