“In order to compete satisfactorily with Delta and United, it needed the additional destinations and the additional frequency that US Air will bring it,” Robert Crandall, the former AMR Corp CEO who attended the Dallas event at Parker’s invitation, said in an interview.
AMR declared bankruptcy in November 2011, citing high labor costs, and eventually reached cost-saving contracts with its three primary unions, including its pilots, after bitter negotiations. Parker reached agreements with American’s biggest unions to secure their support for his merger pursuit.
The new American Airlines Group has annual revenue of about $39 billion based on 2012 figures. It has a solid presence on both U.S. coasts and on North Atlantic routes, given American’s revenue-sharing joint venture with British Airways and Iberia (ICAG.L). The new carrier has hubs in Dallas-Fort Worth, Miami, New York, Chicago, Los Angeles, Phoenix, Washington, Philadelphia and Charlotte, North Carolina.