Tom Horton is now going even farther than claiming credit for the idea of an AA/US Airways merger.  In addition to all of that, Tom Horton is also bashing US Airways as the airline who needs a merger more desperately than American Airlines.  It is his contention that US Airways is desperate, has always been desperate and that he’ll be in charge of any merger decisions at American Airlines.

This is getting personal real fast.

US Airways isn’t wrong when it contends that its a viable airline without a merger.  They’ve proved that over and over again over the past 4 years. They earn money, they earn a lot of profit relative to their revenues and they do it consistently.  American Airlines hasn’t earned profits, hasn’t even mitigated their losses very well relative to their revenues and has lost roughly $11 Billion over the past decade.

US Airways has been pretty smart in seeking merger partners.  Even if it hasn’t been able to engage in one since the America West / US Airways merger, it has pushed industry consolidation very hard.  Over and over again, US Airways has been the catalyst for mergers.  And each merger has benefited US Airways with industry consolidation.

The thing that I find arrogant (again) is Tom Horton’s statements about who’ll be in charge of deciding mergers at American Airlines.  Increasingly, his public comments remind me of a certain Secretary of State for Ronald Reagan in 1981.   It’s notable that that man was ultimately asked to leave government.

I’m also finding the political intrigue going on at AA to be distressing.  Instead of engaging in a real merger examination process, the executive leadership and its attorneys are running around trying to find ways to derail that examination while publicly appearing to embrace it.  Not good.  It begs the question:  What are you so damn afraid of if you think you are so damn good at your jobs.

Members of the UCC and the bankruptcy court judge should consider having a frank discussion with the executive leadership to level set expectations and, perhaps, indicate that egos needed to get put away for now.

Filed under: Airline News by ajax
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