Doug Parker’s Internal Memo to US Airways Employees Regarding the American Merger

Thanks to PMttP reader Mary in Tucson, AZ, we have a full copy of the post DoJ message that Doug Parker sent Weds. to US employees via their internal intranet site, Wings. Interestingly enough, the site is open to the public, though you’ll need a user name and password to view any of the articles or announcements. Click the graphic below to get a full size version.

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Comments

    • That “idiot” understood “we are hopeful” just fine. I’m sure they are equally hopeful that they will be the world’s largest airline by # of aircraft and total passenger miles flown by this time next month. Hope is not the same as expectation.

  1. That memo is nothing compared to what I read below that was included in the DOJ lawsuit; this is the reason the merger will never go thru; the DOJ takes COLLUSION very seriously; thanks for showing your true colors Doug

    The juiciest bit to me was when Doug Parker is alleged to have forwarded an email to a rival airline CEO about how bad a “triple miles” promotion was for the airline industry profitability. I was shocked to read this because many large companies make it VERY clear in their training to employees that such attempts to collude could be potentially illegal.

    In 2010, one of US Airways’ larger rivals extended a “triple miles” promotion that set off a market share battle among legacy carriers. The rival airline was also expanding into new markets and was rumored to be returning planes to its fleet that had been mothballed during the recession. US Airways’ CEO complained about these aggressive maneuvers, stating to his senior executives that such actions were “hurting [the rival airline’s] profitability – and unfortunately everyone else’s.”

    US Airways’ senior management debated over email about how best to get the rival airline’s attention and bring it back in line with the rest of the industry. In that email thread, US Airways’ CEO urged the other executives to “portray these guys as idiots to Wall Street and anyone else who’ll listen.”

    Ultimately, to make sure the message was received, US Airways’ CEO forwarded the email chain—and its candid discussion about how aggressive competition would be bad for the industry—directly to the CEO of the rival airline. (The rival’s CEO immediately responded that it was an inappropriate communication that he was referring to his general counsel.)

    Translation: Doug Parker pushes the envelope to get other airlines to not compete and maintain overall industry profitability.

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