but essentially, this will be doug parker's airline to run.nd the importance of this merger cannot be overstated. this will be the world's largest airline. when you look at combining us airways and american, not only do they compliment each other here in the united states, but the dominance that they're going to have when you combine american in latin america along with american to heath row with us airways to european cities like amsterdam and brussels, these guys are combined to away global behemoth, if you will, when it comes to a lines. this is the latest wave in the consolidation. it's pretty much played out as much as possible. >> when you add in aig or ba as cochair, as well, how -- and we know that they would like to get much closer, as well, how powerful does that become? >> extremely powerful. really, ross, the only thing you're looking at in terms of weaknesses for the new american, even when you factor in the tie-up with ba, is to asia. they are not as strong as united, not as strong as delta northwest, and obviously the asian carr

in this case, doug parker is going to run the final company as the ceo.he chairman of -- rather the current ceo of american air is going to become the chairman of the xwand company through -- sometime in mid 2014. let me pick up the rest of this release as we're -- >> why don't we bring phil lebeau in. he is standing by at the airport in ka dallas. phil, wa can you tell us? this is something we've been waiting for for quite a while. we have been. and a lot of they details have been out for quite some time. american, the previous american, the old american, if you will, is still going through chapter 11 restructuring. and once they file those papers in court, we're get a better sense in terms of timing for when that bankruptcy will wrap up. but andrew hit on the key points. this is an $11 billion company, an all-stock deal. 72% will be going to the amr critters. 22% will be going to the shareholders. doug parker, we showed you the video a few minutes ago as we were walking through security here at the dfw airport. he will be the ceo. if you think about thi

worth airport, doug parker, the ceo of u.s.ho is the ceo of american airlines, he will be chairman of the new company, they're introducing the company at a press conference here, going over the details and what are those details, carl, you mentioned it's an $11 billion all stock transition -- transaction, and what you're looking at is american creditors will get 72% of the new american/u.s. airways shareholders get 28% of the new americ american. this caps the pend of an amazing period of consolidation over the last eight years in the airline industry. doug parker started it all way back in 2005, when you talk about the merger of america west and u.s. airways and this new airline, it will be the largest in the world with 4.7 million available seat miles. we talked to doug parker earlier today on "squawk box" and we asked him if whether or not he thinks the consolidation play is over. here's what he had to say. >> it was 2005, there were 11 airlines, at least 1% of the industry. now we're down to three large carriers. i don't th

this is an airline run by doug parker. this is us airways. continuing to move higher. we have seen this over the last year as people see the consolidation game. not played out yet. that's why the shares continuing moving higher. >> so would american live on? u.s. air, the name -- >> it would be american. the brand is just far too powerful on a global basis especially. that's what you have it look at here. this is all about global aeration game. it is nice to talk about what it means for americans in the u.s. at the end of the day, this is all about having the size on a global basis. >> they should change it to people's express, western piedmont, eastern. >> i'm sure that would go over well with those back -- >> you raised a good point. who is left to merge after this? is this the last of the mega mergers in the aviation world? >> well, what we are eventually moving towards is what happens if we ever get to the point where you see cross border international mergers. almost every country has said no, we don't want to have foreign ownership on a majority level. can you ha

create the world's biggest airline to keep the american airlines name and run by us airways ceo doug parker. that deal caps a turbulent half decade of bankruptcies and consolidation for the u.s. airline industry. >>> pope benedict has two weeks left as head of the church. the pontiff celebrated his final mass at the vatican. benedict was given a long-standing ovation as he prepares to step down on february 28th. after almost eight years as leader of more than 1.2 billion catholics worldwide. >>> it is valentine's day and we always think of our meteorologist, bill karins. we always want good weather. >> i thought you meant with love. >> of course we love you, bill. >> good morning, everyone. as we start this valentine's day, grab the umbrella heading into the northwest. especially from olympia to bellingham. as the rain comes at us from the north and northwest, this is associated with the warm front lingering along the coast trying to move in. damp weather for the morning commute. if you are driving down i-5 today, tomorrow looks better. we are seeing a clearing trend. we have had high press

here is new ceo of the new american doug parker today on squawk box. >> between our two, over 900 routes we fly. there is overlap on 12. and in the most of those, you know, kind of hub to hub things like charlotte to dallas, of course. so very little overlap. highly complimentary. we expect to continue to fly, continue service out of all of the hubs we have. service to communities we have. so that's good. >> that may be good but this is not good. if you are an investor in airline stock, you saw earlier that shares of lcc, us airways stock are under pressure. airline index sue is having its worst day in the last three months and you have to wonder if perhaps a lot of investors are saying this is the end of the consolidation game for some time. i'm getting out. i have profits i can can look in. >> sure. consolidation move is what propelled airlines for so long. they add great year last year. what does this mean for flyers though? good news or bad news, in terms of capacity and in terms of prices? >> you will hear a lot of people say when you have fewer airlines, fares are going to shoot up

airways chief doug parker will take the top spot. >> we'll work together to make sure we have a good transition. >> reporter: the merger will bring major logistical challenges. recent union of united and continental led to a spike in consumer complaints. this is the fourth major airline merger since 2008. >> i think it's just something that we have to learn to accept and hopefully it will not lead to higher fares. >> reporter: if the deal does go through, just four airlines will control 70% of the market. >> passengers who have already booked tickets don't need to worry because the merger still has to clear several hurdles. u.s. airways shareholders have to vote. federal regulators have to sign off, but it's expected the deal will be approved. >>> that infamous 1979 heinz commercial says anticipation keeps ketchup lovers waiting but not for warren buffett. berkshire hathaway has teamed up with an investment group to buy h.j. heinz and the deal is valued at $28 billion the assumption of $4 billion in debt, but first the takeover has to be approved by heinz stakeholders. >>> coming up

airway ceo doug parker and american ailes ceo tom horton.sk you first, doug. a lot of people say does this mean higher prices for me when i want to travel? >> the answer is no. fortunately we have two airlines highly complimentary, not much overlap at all. but we've combined an airline that can compete against those larger. united and delta that can compete strongly against us. so it's more competition, not less. >> doug, you've been -- it sounds like you need a little bottle of water over there. here i go. dare i bring up marco rubio. but you've been pushing for the merger for a long time why and why now? >> well, it makes sense now. it's made sense for a while, we think, but sometimes all the planets need to align and it's taken a while for us to get here but fortunately we've come to an agreement it makes sense for all of our customers and employees and investors and we couldn't be happier. >> what's the benefit for american airlines. american hasn't done so great litly. what's the benefit for american with this emergencier? >> well you k

airways ceo, doug parker.american's ceo, tom horton, will become the chairman of the new company. >>> well, the end is finally in sight for thousands of folks stuck on board that crippled carnival cruise ship. tomorrow the ironically named triumph is expected to arrive in mobile, alabama. it's got two tug boats and a coast guard boat escorting it. on sunday an engine fire knocked out power, left the ship adrift in the gulf of mexico. since then passengers have been complaining about everything from the swerlting heat to is he wage literally rung down the cabin walls. donelle king is on the ship. >> people are sleeping in hallways. there's mattresses and people collected everywhere. >> carnival cruise says we're really, really sorry. the national transportation board has launched an investigation. they want to know what started that fire. >>> still ahead, nothing can ruin a romantic nature out like a rat dropping. russ ptacek checks out intrepid restaurants that made the health department hit list. >>> and if s

airways' chief executive, doug parker. but what will it mean for consumers? suzanne pratt has the story. >> reporter: love may be in the air for american airlines and u.s. airways, but will passengers love this marriage? there are at least a few reasons they just might, including increased access to new destinations and a chance to combine their frequent flier miles. but what about ticket prices? once the merger happens, the majority of the u.s. air travel market will be controlled by just four companies: american, delta, united-continental and southwest. frequent flier mile expert brian kelly says consumers should expect to pay more, at least on some routes. >> because there's consolidation, i do think that, as planes get packed again, we'll see fares shoot up again, especially if oil starts to rise, as well. >> reporter: other airline experts say ticket prices are unlikely to take off as a result of the merger. they point out there have been a lot of big airline deals in the last decade, and yet airfares on average have barely budged. and for those road war

doug parker has wanted this for ages. he has wanted to have a connection, a merger with a larger airline, and he risks us airways being marginalized without this deal being done. he trielt with delta, united twice. this is where he takes over as ceo. he really championed. he worked with the labor unions and creditors to get this done. >> what's in store for passengers with this new partnership? >> we have been down this road before. generally speaking when two major airlines merge, prices can sometimes have a price war. sometimes the consumer initially gets a better deal but overtime less competition in general means better prices. >> that's the headacheup. >>> later we're going to talk to both the ceos of american airlines and us airways. they'll be here today to give us the big announcement and if that does mean higher prices for you. >>> meanwhile passengers are stranded in grotesque conditions after a fire knocked out the ship's power on sunday. right now it's 30b mile off the coast of mobile, aem. anna werner is ther

it will be run by us airways c-e-o doug parker.ines c-e-o tom horton will become chairman. this deal has been in the works since august when creditors forced american airlines to consider a merger. the merge of american and u- s airways will be slightly bigger than united airlines. >> the california company is recalling some baby spinach because it could be contaminated with e-coli. check your fridge before you make that salad. the spinach was sold in several states under five market organics, full circle organic, simple truth organic, marketside organic and taylor farms organic. the company, taylor farms retail, says no illnesses have been reported. >> a developing story. that crippled cruise ship is expected to limp into an alabama port sometime tomorrow. more than 4-thousand people are on board.and it sounds like they're pretty miserable. after an engine room fire four days ago - a power outage has reportedly led to sewage-filled hallways and long lines for food. people who have managed to reach relatives by phone are talking ab

cheryl: a new ceo according to reports, doug parker would be the new ceo according to the journal, tomuld be a chairman, maybe he is around 4 a little bit. doug parker, the right guy to run what would be really ought be remiss in global air travel. >> a couple things. doug is a visionary. pcs inga the rest of us don't see, thinks things through. that is what america needs but don't get duke -- too misled. brontosaurus was very big and didn't do real good. alaska airlines does well. size isn't the issue. it is revenue stream and competitive flow and this will improve it. it won't vix all problems but will improve it. cheryl: no disrespect are partners at the wall street journal but i cannot but wonder if this information is still coming from the pilot union which would ensure bankruptcy in the beginning, directly to u.s. airways without the company's approval or support. do you think the pilots union is directly behind reports that the deal will happen? >> interest of full disclosure over the years we worked with the airline pilots association, as they see the value in this and when to

the ceo, doug parker, will ultimately run the show. >> the merger is about the opportunity to grow rather than just combine networks. >> it creates the world's largest airline. >> we will once again be an industry leader were the of the name american airlines. >> the new american would offer more than 6700 daily flights without shutting down any hubs. frequent fliers in chicago have doubts. since 2008, travelers have watched their options diminished through mergers. now three met at international airlines will remain, united, delta, an american. consumer advocates warned that prices will go up. >> competition will be reduced by about 25%. >> your frequent flyer miles? the airlines say they are all safe. >> you have mixed miles with both accounts, you will be able to combine them to a much larger accounts. >> one of the few downsides to a business move that will create a new major competitor. there will not be any changes for several months. the merger still needs to be approved by a bankruptcy judge in an antitrust regulator. the deal is expected to be finalized by the first quarter of th

doug parker, the new ceo of american, says ticket prices will not go up.competition. it will be more fun for everyone. we'll see. take a look at stocks though. i think warren buffett is the "oracle of omaha" for a reason. take a look what airline stocks did today. even though there is some evidence that in these big mergers, these big airline consolidation that is the airline stocks do pretty well. in agenda they're not doing very well. they don't seem to like this much at all. what about the new american, the new american airlines? the us airways name, by the way goes away. it goes to the barn where brand any of and american and twa live right now. this new american will have $239 billion in revenue in 2012. it would be 2% larger than ual. it will be the world's biggest airline and better positioned to compete with united in markets like this in chicago. it will cost about a billion dollars to do the merger. they say they will save a billion dollars in costs and 6700 daily flights, 336 destinations, 56 countries. is bigger better at this point? we don't k

dug doug parker and/. >> before the deal you had two megacarriers in delta and united. now you'll have a third carrier, that is fully competitive with those two on a global basis. in fact in the global context, you have three global alliances, star, sky team and one world. this deal bringing u.s. air into the fold of american makes a stronger, more robust competitor. >> i guess as a regular flying looking at the industry, i know you will be the largest when all is said and done. but there are still only so many planes out there. demand has picked up, consumers are used to more crowded planes. good for you in the long run. but there is this concern about fees going up for everything from where you sit to what you get on plane. and it's turned out to be a ask you standings moneymaker for all airlines. billions have come off added fees. are we going to see more? >> well, there's clearly more of a trend of having customers pay for things they value most and not pay for things they would rather not purchase. that's been constructive for the industry. i think it has been one

airways ceo doug parker. new data showing demand for gold. thomas horton will be here as well.it has slipped and so far we are going to look at where the gold is heading next. stay with us [ male announcer ] how can power conmption in china, impact wo exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we unrstand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. twe price. invest with confidence. request a prospectus or summary prospectus . ... before insting. . .. liz: demand for gold is dropping and not just today. this as investors opt for riskier trade as prices settle near six-month lows. has the precious metal lost its shine or is this a buying opportunity? joining me liberty trading group president. is this much ado about nothing or is this a real moment where suddenly gold is at six-month lows? >> hi, liz. we're basically looking at reallocation. so many investors over last several months got scared into precious metals, h

doug parker, current ceo is the ceo of the merged airline. when it brings up the question, ceo of amr, he is likely to get the role of nonexecutive chairman. perhaps executive chairman though he was told he would not like to have a lot of power in an emerged airline. this would create the world's largest airline, larger than united continental. already approving terms of essentially bringing unions together. that is a key factor in getting this done over the last six months. and one more time as you look at shares of us airways over the last year, wh a nice move this has had and comment on wall street today, sue, saying this is good. the airline needs to continue and that's why shares are moving higher. >> indeed. investors certainly like it. phil within there was an ntsb news conference this morning. what are the latest we know about the 787 dreamliner? >> they are making progress. they found where the fire started in the lithium ion battery. it was cell number 6. there was short circuiting in the cell. what they have yet to determine, and i

>> well, you know, i think this one is a little bit different and i think what, what, doug parker just know, the synergies between these two airlines is very different than some of the mergers we've seen in the past in that there is only 12 overlapping routes. so the, so out of 900, out of 900 you've got 12 overlapping. you're just, you're going to create much more service and opportunity for, for travel to get to where you want to go. melissa: that is great point. explain to the viewers what that means. if there is very little overlapping, it means for example, if you're a flyer and your flight gets canceled, if you have a bigger map overall, there is a better chance that you're going to find another way to get where you're going. and it also means that less things will be eliminated as a result because if they they only eliminate maybe those 12, maybe even fewer? >> exactly. exactly. maybe small communities will see a little built of a pullback as a result of this merger. but for the most part you're going to have more service. and the ability to, as you said, take additional flights

the new company, which will be called american airlines, run by current us airways ceo doug parker, willn 900 planes and 3200 daily flights. the deal has been in the works since august. american airlines has been in bankruptcy since november of 2011. >>> and warren buffett is putting the ring on a finger of h.j. heinz this valentine's day. the maker of ketchup and classico spaghetti sauce has said i do to $28 billion acquisition deal with berkshire hathaway and 3g capital. it's the largest food industry deal ever. heinz shareholders will receive a 20% premium to wednesday's closing stock price. buffett called in to cnbc and said while berkshire is putting up half the equity for the deal 3g will be primarily responsible for running heinz. >> thanks, courtney. we have some breaking news in connection to that suspicious death of a 94-year-old alexandria man. police say they arrested a woman for burglarizing the home of 94-year-old elmer rohrs back in november. neighbors tell police the home was burglarized a number of times in the past few months. police say the arrest has no connection to

doug parker who will run it. counterpart-- tom horton at american-- will serve as chairman, but bow out after the transition the two are friends who started their careers together at american three decades ago. >> to run a new airline you need to have one leader and only one leader that the rest of the airline sees. and tom was nice enough to agree to hang around and help me with that transition but then also cared enough about american to know that once that transition happens, the company needs to see one leader and was confident enough in me to let me do that which i'm elated to do. >> and don't mess it up. >> brown: american airlines-- founded in 1930-- has always touted itself as a company of firsts. >> american had already put stewardesses on the plane, even food and then the radio. and their firsts soon became a tradition in the business. from the first sleeper pil the first living room size lounge. >> brown: now, the new american stands to become the world's largest carrier if federal regulators and a.m.r

doug parker ceo of us airways will head the new company. >>> and marns are feeling more confident buoyedof new hiring. that's it from cnbc, first in business worldwide. now back to "hardball." ♪ >>> too many of our children are being taken away from us. two months ago america mourned 26 innocent first graders and their educators in newtown. last year there were 443 murders with a firearm on the streets of this city, and 65 of those victims were 18 and under. so that's the equivalent of a newtown every four months. and that's precisely why the overwhelming majority of americans are asking for some common sense proposals to make it harder for criminals to get their hands on a gun. >> now, i think that's smart. welcome back. of course, thafers president obama speaking earlier this afternoon in chicago, his hometown, stemming gun violence has become a major second term agenda item for the president, of course. some of the most memorable moments from his state of the union address actually dealt with giving victims of gun violence the opportunity to have congress vote on new gun control measu

airways doug parker, we asked him if the consolidation play is over for airline stocks. here's what he had to say. >> it was 2005, like 11 airlines, at least 1% of the industry and now we're down, to you know, three areas. i don't think there's a lot of consolidation. nicely rational and intensely competitive airline industry which is going to be good for consumers and investors. >> investors of lcc which is the u.s. airways stock. they, today, are taking money off the table, not surprising, but we should point out, maria, when we've talked to a number of analysts about this deal and whether or not this is good in the long term for u.s. airways and the new american, almost all of them said the same thing. they believe in parker, and they believe that this airline will be a very cash flow positive airline in the years to come. maria? >> all right. thank you so much, phil and brian, and that's just two examples of some very big deals. merger activity at the highest levels since 2009. up close to 90% in january versus last year. >> when there was no activity last year, it's

doug parker will be the new ceo of the new american airlines.is completed. what was that made mr. horton say i can step aside i don't have to run the joint airline? he's getting a lot of money. in fact tom horton will be getting $18.75 million after amr exits chapter 11 bankruptcy protection. that will be split between cash and stock 50/50. he'll get lifetime flight and travel benefits with the new amr. he will be chairman of the board when this airline exits bankruptcy and there's mr. horton introducing doug parker yesterday at the press conference in dallas. he will be chairman of the board of the new amr but only through the first annual meeting which is expected to happen in the spring or summer of 2014 and then he's out of the company. carl, the bottom line is tom horton steering the company through bankruptcy and through this merger will get $19.87 and then he's adios, away from the company. >> i wonder what union members will say about that. from the skies to the sea let's head no bill, alabama where the disabled carnival ship finally doc

it will be run by us airways c-e-o doug parker.airlines c-e-o tom horton will become chairman. this deal has been in the works since august when creditors forced american airlines to consider a merger. the merge of american and u-s airways will be slightly bigger than united airlines. we will be right back. . well, well, well. growing up, we didn't have u-verse. we couldn't record four shows at the same time. in my day, you were lucky if you could record two shows. and if mom was recording her dumb show and dad was recording his dumb show then, by george, that's all we watched. and we liked it! today's kids got it so good. [ male announcer ] get u-verse tv for just $19 a month for 1 year when you bundle tv and internet. rethink possible. when you bundle tv and internet. get 36 months interest-free financing, and save up to $500 on beautyrest and posturepedic. get a sealy queen set for just $399. even get 3 years interest-free financing on tempur-pedic. plus, free delivery, set-up, and removal of your old set. keep more presidents i

airways leader doug parker would be ceo.ying to calm investors above the $24.4 billion deal to take the computer maker private. the deal values still at 13.68 the share but some investors are taking the company as saying the companies to be valued at $24 a share. >> the boards of american airlines' parent amr corp. and u.s. airways have pushed back meeting on plans to consider a final merger. reports say the amr board wants to meet in person and that u.s. airways board would only meet after the am board approves the deal. it is not clear when the two wars will finally meet. amr in u.s. airways should could decide early this week whether to merge their two companies. are the weekend boeing said its 78787 dream liner on a test flight, the first since the new aircraft was grounded three weeks ago. the company says the aircraft live in and out of boeing field in seattle. is it to a half hours in the air. the fda granted permission for test flights last thursday. >> speculation that apple's next big thing will be a smart what is

. $1 billion in annual savings, $1 billion in costs to put it together, doug parker, the new ceo of thed here's an interesting one, 72% to the american side, 28% to the u.s. airways side and that includes for the american folks some of the folks who had american stock in bankruptcy. that is unprecedented. this seems like a win/win. the vp of american airlines, is a win/win. >> it is win/win for employees and customers and as we thought about the combined airline in a position to create for the creditors to our bankruptcy. jeff: kerri, usairways, senior vp this will be a ground zero paddling chicago, you got united, your friends down the terminal there, this is going to be a real battle zone. >> it is and we at u.s. airways are excited to become part of the american family and the combined carrier will be stronger to compete better against the other two major network global carriers in the u.s.. >> i want to put up the stocks of the other competing airlines. someone did a study and found when you do a merger like this the other airline stocks move up as well but you are hoping for good t

it will run by airways ceo doug parker, while american airlines ceo tom horton will become chairman.in the works since august with creditors forced american airlines to consider a merger. the merger of american in u.s. airways will be slightly bigger than the united airlines. >> nationals, the carnival cruise ship that has been without power since a fire in its digital is expected to report today in mobile, alabama. >> the carnival triumph is bank towed from where it broke down in the gulf of mexico. >> more than 4000 people are on board. >> carnival cruise lines say it is canceling another 12 voyages for the disabled ship. >> the cruises aboard the triumph or to take place from february 21st thru april 13th. passengers will be fully refunded and get discounts on future cruises. >> that is the last line. i did not know if it applies to these passengers or also. these passengers need more. apparently people are talking about horrendous food lines and very little food. feces everywhere with a limited number of toilets. no air-conditioning. >> without electricity and nothing is working

doug parker is going to be a great ceo. >> our new normal. aviation expert.e us the web site. >> theairlinezone.com. >> thank you for coming in today. we will be right back. and still ahead in our next half hour, the other side of sequestration. we know the fall out for the defense industry but the cuts could also take a huge toll on medical research. we're going to tell you how. be right back. back.  >>> we have bad news for fans of bad romance singer lady gaga. >> the pop star has canceled the rest of her born this way ball tour including the stop here in dc. that's a change from what we heard before. the singer announced on twitter she has a tear in her right hip that needs surgery. gaga says she hd her condition from her staff hoping it would get better. ticket holders will receive full refunds. we wish her the best. >> he have a theory. all those crazy high heels she wears. >> she does dance around. >> she's had a couple spills on the stage. yeah. >> some of those costumes are heavy. >> you remember a year ago when i did the ra

airways ceo doug parker will jointly lead both the transition team and the new american as it e americas from bankruptcy. mr. park will be ceo of the new company, and mr. horton will be chairman for the board. i understand and recognize that many members of congress are skeptical of promises made and concerned about industry and sub concentration. as for the former, we do not sphwoand make commitments that we cannot keep and as for the latter, it is clear that this merger does not create a high degree of concentration. above all, however, i would urge you to concert the facts with which i began my testimony. nothing has been more damaging for the airline industry, our employees, our customers, and shareholders than the years of economic turmoil we have experienced. this transaction is unique in that it is endorsed by all of our labor unions and embraced by management and the boards above companies. we know we have a solid obligation to implement this transaction with great care and thought. we're eager do so. thank you for the opportunity to testify today. >> mr. johnson? >> thank you mr

but we do know that in terms of management, doug parker, who is the usair ceo, he would be the ceo, andhe new american/usair. what happens to tom horton, who is the current ceo of american? that still needs to be finalized. there is some discussion about him taking a position as an honorary executive chairman, or perhaps executive board chairman, with a little bit more power. although i was told this morning it's unlikely that he's going to have a whole lot of say in terms of how the airline is run once the merger takes place. if they are finally brought together, and again we expect this to happen within the next couple of weeks, it would create the largest airline in the world. larger than even united/continental. the unions have already approved the terms here, so what we're looking at right now is the final financial details and some of the management details being worked out by the creditors, as well as in bankruptcy court. take a look at shares of lcc. remember american, because it's in bankruptcy, that stock is not really worth checking. but if you look at us airways over the las