$12 Billion...And No Illusions

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"American and US Airways are under no illusions that mergers are easy or seamless," said Gary Kennedy, senior VP, general counsel and chief compliance officer for American Airlines, in his testimony before the U.S. Senate's aviation subcommittee today.

However, he emphasized that the carriers have studied--and learned from--past U.S. airline mergers. "This merger is good news for everyone except our competitors," he testified.

Leading up to these statements, he laid the foundation for why it is essential. A key point being "In 2001, American was the largest airline in the world. However, the mergers of Delta and Northwest, United and Continental, and Southwest and AirTran, moved American from the largest to the fourth largest airline in terms of U.S. domestic passengers, and despite our best efforts, our losses continued to mount, reaching $12 billion over the previous 10 years," said Kennedy,

First to fourth, and the $12 billion, led to the 2011 bankruptcy filing.

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