US Airways, AA execs defend merger plans on Capitol Hill

Credit: AFP/Getty Images

A US Airways tail rest on the tarmac near two American Airlines planes at Ronald Reagan Washington National Airport in Arlington, Virginia on April 23, 2012. American Airlines heads to federal court on April 23, 2012 to convince a bankruptcy judge that to survive, it must break labor agreements that workers fought decades to win. The airline lost more than $10 billion USD in the decade leading up to its declaration of bankruptcy last November. During that same period most of its major rivals used the bankruptcy process to cut wages and benefits, which American says has left it saddled with higher labor costs. US Airways has won the support of unions at the bankrupt American Airlines for a proposal to fold the two companies into one giant carrier, US Airways CEO Doug Parker said on April 20, 2012. AFP PHOTO/Jim Watson (Photo credit should read JIM WATSON/AFP/Getty Images)

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by WCNC.com Staff

WCNC.com

Posted on March 19, 2013 at 5:55 PM

U.S. Airways and American Airlines executives were forced to defend their merger plans on Capitol Hill Tuesday.

Two consumer groups also testified saying the merger would be bad for consumers; fares would go up with reduced service to small communities.

U.S. Airways CEO Doug Parker and Tom Horton of American say they can save billions of dollars annually by joining forces.  

Parker also says     things like management reductions, consolidated IT systems and consolidating facilities will bring down costs.

The merger would keep the American name, though it still needs approval of a bankruptcy judge, U.S. Airways shareholders and U.S. regulators.

Parker will be in Charlotte on Thursday to talk about the merger.
 

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