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Merging American Airlines, US Airways Technology Could Take Years, Cost Millions

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Source: Media Article

Date: Feb 21, 2013

Source: Charlotte Business Journal
Author: Jen Wilson

The job of merging the various technology systems that help keep American Airlines parent AMR Corp. and US Airways Group Inc. flying could take several years and cost millions of dollars, the Dallas Business Journal reports.

Looking at the combined company's technology "to-do" list, it's not hard to see why. There are the reservation websites. The check-in systems (both online and via kiosks). Inventory systems. Schedule planning. Aircraft maintenance. Revenue accounting and management.

"Integration is usually a difficult exercise," Rod Berger of New York-based Bergmen Consulting told the Dallas publication. "Associated costs and chances of success are hard to predict."

Berger estimates the process of joining the two carriers' various systems will take roughly three or four years. And Mark Ondrey, president of Minnesota-based Velozation Airline Technology Services, thinks costs will easily reach into millions of dollars.

AMR and US Airways will inevitably face some technical glitches as they work through the integration as well, according to a report from The Wall Street Journal.

But the merger also provides opportunities to replace aging technology systems and bring efficiencies to the combined company.

In separate emails to the Dallas Business Journal, spokespeople for AMR and US Airways said it is too soon to talk about integrating their respective technology systems since the merger hasn't closed yet.

The deal still requires federal regulatory approval as well, but reports last week indicated that probably won't be a problem.

Tempe, Ariz.-based US Airways operates its largest hub at Charlotte Douglas International Airport. Once the merger is complete, CLT will become the second-largest hub of the world's largest airline.

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