Derek Kerr, Executive Vice President and Chief Economic Officer of US Airways, poses for a portrait ...

1. US Airways open to merger: CFO
Derek Kerr, Executive Vice President and Chief Economic Officer of US Airways, poses for a portrait
throughout the 2010 Reuters Travel and Leisure Summit in New York February 23, 2010.
Reuters/Lucas Jackson
NEW YORK (Reuters) - US Airways LCC.N is open to merging with yet another U.S. carrier, its chief
financial officer stated on Tuesday, including that the domestic airline marketplace has too a lot of
important gamers.
Speaking at the Reuters Travel and Leisure Summit in New York, Derek Kerr stated US Airways is
not in merger talks with one more carrier for the reason that "it takes two to tango."
US Airways, the fifth biggest U.S. airline, is not interested in merging with a foreign airline, Kerr
stated, simply because that would not minimize capacity in the domestic industry.
"I do not consider that will make a difference," he said. "Domestic is in which there is also
significantly fragmentation and there are as well quite a few airlines."
US Airways is no stranger to mergers: it was acquired by America West in 2005 and it attempted,
and failed, to buy Delta Air Lines (DAL.N) in 2007 as a result of a hostile bid.
"It can be five main carriers. It is too fragmented," Kerr mentioned of the U.S. airline field. "You
have also numerous hubs, all chasing the exact same passengers making an attempt to connect
through the nation. We feel that it demands to be consolidated."
The airline field has misplaced $50 billion in the past ten years, like $eleven billion in 2009 alone,
according to the International Air Transport Association. The trade group expects the sector to get
at least 3 years to recover from the slump in demand brought on by the economic downturn.
"Consolidation is one of the major ways this sector can grow to be profitable," Kerr said.
Probably PARTNERS?
Earlier on Tuesday, United Airlines UAUA.O Chief Money Officer Kathryn Mikells also stated the
airline was open to a merger, incorporating that the sector is poised for consolidation.
Asked why US Airways was not approaching one more carrier, Kerr stated: "It really is tough for the
No. 5 player to make a move on No. 1 via four." The four greatest U.S. carriers are Delta, American
Airlines AMR.N, United and Continental Airlines
CAL.N.
Sources had informed Reuters US Airways had spoken with United Airlines about a probable merger
in 2008, when Delta was merging with Northwest. The talks ended as United sought an alliance with
Continental instead.
United Airlines and US Airways are both portion of Star Alliance, a worldwide network of carriers

2. that makes it possible for them to streamline prices although sharing income.
Star Alliance, which competes with Oneworld and SkyTeam, is seeking a lot more partners, Kerr
stated. United's Mikells had also mentioned the carrier was hunting to include partners to its
alliance, primarily in areas such as South America and Africa.
Kerr mentioned alliances are not complete substitutes for mergers but do enable in having some
synergies. "1 matter that is very really hard to do across alliances is cost-cutting," he explained.
(Reporting by Jui Chakravorty Extra reporting by Deena Beasley Editing by Richard Chang)