US Airways-AA Merger Won't Hike Fares Says CEO

Wednesday, 27 Mar 2013 | 12:04 PM ET
US Airways' Doug Parker on Future of Fares
Wednesday, 27 Mar 2013 | 7:00 AM ET
US Airways and American announced a merger last month to create the world's largest airline. Doug Parker, chairman & CEO of US Airways, offers insight.

Airfares at the new American Airlines won't go up because of its merger with US Airways, said Doug Parker, who'll be chief executive of the combined carrier.

Parker did acknowledge the cost of flying may go up in the future because of certain external factors such as possible increases in oil prices, which airlines often pass along, at least in part, to passengers.

But Parker, currently chief executive of US Airways, stressed in a "Squawk Box" interview on Wednesday, "We're putting these two airlines together and not reducing supply … What's going to happen to prices? I don't know. This merger's not going to have an impact."

(Flashback: AMR, US Airways Merger Good for Customers: CEOs)

American and US Airways as a combined carrier will be better positioned in a competitive landscape that includes heavyweights United and Delta, as well as smaller carriers such as Southwest and JetBlue, he said.

"American can't do that as well today as they'd like. US Airways can't do as well as we'd like. Put them together, we create a competitor that can do those things," Parker explained. The combined carrier will generate about a $1 billion in synergies. "This [will be] a $40 billion airline. It's 2.5 percent of our revenue."

As far as all the stakeholders in this deal from the pilots to the mechanics to the flight attendants, he said, "We have no opposition to the merger."

In Wednesday's CNBC interview, Parker also addressed the question of allowing passengers to leave their electronic devices turned on during takeoffs and landings. (Read More: US Airways CEO: Sometimes I Forget to Turn Off Cell)

By CNBC's Matthew J. Belvedere; Follow him on Twitter @Matt_SquawkCNBC

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