Allegiant exec supports American-US Airways merger

San Francisco
This story is sourced from Pro
See more Pro news »

Allegiant Air executive Jude Bricker supports a merger between American Airlines and US Airways, even though a deal would probably benefit its competitors more.

"American's going to merge with somebody," says Bricker, senior vice-president of planning and treasurer at the Las Vegas-based low-cost carrier, at the Ascend Aviation 2020 Finance Forum in San Francisco today. "It's probably going to be [US] Airways. I certainly hope its Airways."

American and US Airways signed a non-disclosure agreement in August after a very public push for a deal by the latter. However, bankrupt American maintains a preference to emerge from chapter 11 bankruptcy protection on a standalone basis.

Allegiant would probably "benefit the least" from a merger of the two among the US carriers, he adds. Bricker explains that carriers including Alaska Airlines, Delta Air Lines and JetBlue Airways would likely benefit more from capacity reductions at the combined carrier because they compete with American and US Airways in more markets than Allegiant.

"Consolidation is great," says Bricker, noting that Allegiant would benefit from a potential drawdown in capacity at Phoenix at the combined carrier. He says that the airline is just "further down the list" in terms of benefits than other US airlines.

American must submit a reorganisation plan to the bankruptcy court by 28 January 2013.