July 04--US Airways CEO Doug Parker told employees in a letter Wednesday that he expects uncertainty about a potential merger with American Airlines to persist for months, possibly through the end of the year or beyond.
He also said he believes the Tempe, Ariz.-based airline will report strong financial results later this month for the second quarter, driven by high demand and lower fuel prices.
US Airways has been pursuing American since the carrier sought bankruptcy protection late last year. American CEO Tom Horton has repeatedly tried to fend off Parker's overtures, saying that American intends to emerge from bankruptcy as a standalone company.
"Given where the American bankruptcy case is at this point, it seems highly unlikely they will emerge before year-end, so that means the speculation and attention around this potential merger will continue for at least several more months and we need to be aware of that," Parker wrote in his letter.
Any merger with American could have big consequences for Charlotte. US Airways operates more than 600 daily flights from Charlotte Douglas International Airport, the vast majority of the airport's total. About 7,000 US Airways employees, and the US Airways pilots' union, are also based in Charlotte.
American recently agreed to extend the so-called exclusivity period with its unsecured creditors committee through December. That means that US Airways probably won't get a chance to formally present its merger plan anytime soon.
"For US Airways, this means a review of alternative strategic plans for American by American and the creditors committee is also likely to be delayed," wrote Parker.
"That delay is fine by us -- there is certainly no urgency for us to merge, so long as we are a given a fair chance to present our superior alternative in time to merge with AMR upon their emergence from bankruptcy," he wrote.
The merger would create America's largest airline. Since merging his former carrier, America West, with US Airways in 2005, Parker has tried unsuccessfully to merge with Delta and United.
Portillo: 704-358-5041 On Twitter @ESPortillo
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