US Air CEO: Merger good for airline industry

The merger of US Airways and American Airlines, which was finalized on Monday, will be good for airline passengers, the CEO of the new company said on Monday.

Appearing on CNBC’s “Squawk Box” show, US Air CEO Doug Parker praised the consolidation of the U.S. aviation into three major “legacy” airlines, counting Delta, United and his airline and American as one company.  

"The three of us have now the ability to take people pretty much anywhere in the world,” Parker said. “What used to be a business where it was purely on schedule, if you have the ability to take people everywhere, you compete on product. And we're prepared to do that."

The merger of US Air and American Airlines was brought to a close on Monday after a nearly yearlong quest that involved a brief court battle with the Department of Justice.

The companies have said that their combination will produce the world’s largest airline. They have valued their merger at $17 billion, up from $11 billion when the deal was first announced in February.

The US Air-American merger is the latest in a trend of consolidation that has drastically altered the U.S. airline industry in just a couple of years.

Beginning in 2008, Delta and Northwest airlines, United and Continental, Southwest and AirTran Airways, and now US Air and American have joined forces.