Can AMR’s CEO Tom Horton survive the American-US Airways merger?

American Airlines CEO Tom Horton (LR)

AMR Corporation’s and American Airlines‘ (Dallas/Fort Worth) CEO Tom Horton, as we have noted, is fighting to keep his job in a new American Airlines as the merger talks with US Airways (Phoenix) progresses. Initially he rebuffed any merger talks with Doug Parker of US Airways. Gradually he has warmed up to the idea. US Airways Group’ (the entity with the money) CEO Doug Parker is likely to become the new CEO of the new American should the merger be completed. This was the situation when America West Airlines (Phoenix) acquired the old US Airways (Washington) and kept the old US name but assumed the management of the new company. This also happened with the Delta-Northwest and United-Continental mergers. Usually one CEO steps aside as there is not enough room in the “kitchen” for two strong CEOs (cooks).

This sensitive issue is one of the remaining issues in the American-US Airways merger discussions. Is there enough room to keep Tom Horton? Maybe as the Chairman of the Board? Would this lead to conflict? Reuters explores these burning questions (see below for the link).

Here is the bio of Thomas W. Horton:

Thomas W. Horton was named Chairman and Chief Executive Officer of AMR Corporation and American Airlines in November 2011. He also currently serves as Chairman of the oneworld® Alliance, where American is a founding member.

Horton became President of AMR Corporation and American Airlines in July 2010. In this role, he oversaw finance, planning, sales and marketing, customer service, information technology and American’s global network and alliance strategy.

Previously, Horton served as Executive Vice President – Finance and Planning and Chief Financial Officer of AMR and American Airlines. He was named to that position in March 2006 upon returning to American from AT&T Corporation, where he served as Vice Chairman and Chief Financial Officer.

Horton initially joined AMR in 1985 and has held a range of leadership positions, including Vice President responsible for the airline’s Europe business, based in London. In January 2000, he was named Senior Vice President and Chief Financial Officer of AMR.

In 2002, Horton joined AT&T, where he served first as CFO and later was also appointed Vice Chairman. In 2005, Horton led the evaluation of strategic alternatives, ultimately leading to the combination with SBC, which formed the new AT&T.

Horton holds a Master of Business Administration degree from the Cox School of Business at Southern Methodist University (SMU) and graduated with a Bachelor of Business Administration degree, magna cum laude, from Baylor University. Horton serves on the Board of Directors of Qualcomm, Inc., a leading developer and innovator of advanced wireless technologies and data solutions. He also serves on the Executive Board of the Cox School of Business at SMU.

Reuters interestingly explores this thorny issue. Read the article: CLICK HERE

American Airlines: AG Slide Show

US Airways: AG Slide Show