American Airlines: New Strategy, No Layoffs

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Dec. 9 (Bloomberg) -- Adam Johnson reports on the American Airlines and US Airways merger on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Speak to the ceo of the new giant in the airline industry.

Circling the wagons in using all the resources of the company.

We are keeping all the airplanes because that is away this merger works.

We need all of that.

The networks are highly complementary.

So we put the networks together.

So supply will be unchanged.

If supply is unchanged and demand remains constant, there should not be any change in the prices.

Prices move a lot based on any sort of factors, but this merger will not be one of those.

No change in airfares.

That is a big deal.

Randa started at american airlines.

Went to us airways and now running the combined entities.

He obviously knows these companies intimately.

When ice down with them last february i said will you raise fares?

He said we might actually lower them.

He said we are trying to compete.

The reason we're bringing them together is to try to compete with the the -- delta and united.

He said what we're doing is trying to bring these airlines together, make them more efficient i combining and then compete with price.

When you talk about increased efficiency, it is interesting on the first day of met officially merged company to say no layoffs, no shrinking at all.

Here is white.

He went to the american airlines unions before there was a deal, before he proposed the deal.

As it turns out, they are old buddies.

He actually went around tom.

He said he went directly to the union to negotiate the deal.

He said i need your help, i will not lay people off.

In order to get the department of justice, as well as the of other attorney general's to agree to the deal, he had to say i know we have nine hubs but we will not shut any of them down.

I know it sounds questionable that you would not shut down any of your homes, but effectively he had to agree.

He got it done.

Thank you so much for bringing us that story.

One we have been watching for a

This text has been automatically generated. It may not be 100% accurate.


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