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USAirways-America West Merger Still Baffles Passengers

By Dan Schlossberg
ConsumerAffairs.com

April 6, 2006

US Airways • Consumer Complaints • Christmas Complaints • An Insider's View --- News • Attendants: US Airways Jets are "Flying Vending Machines" • Screens Go Dark on US Airways • US Airways Faces Disability Charge • US Airways Cuts Flights From Pittsburgh • The Ides of March Lasted All Month for US Airways • Problems Persist for US Airways Passengers • US Airways Still Sorting Out Lost Bags • US Airways Makes Bid for Delta • US Airways Says Nuts to Peanuts • USAirways-America West Merger Still Baffles Passengers • Report Slams US Airways Christmas Performance • US Airways Turns In Jets, Cancels Flights • Florida: Treatment of Quadriplegic Passenger "Callous" • US Airways Wins Concessions from Machinists • Loan Extension Provides More Turnaround Time • Attendants Accept Cuts, Machinists Still Hold-Outs • Machinists May Walk • January Crucial for US Airways • A Christmas Nightmare • Breathing Room • Turnaround Plans • US Air Deathwatch

Two heads are better than one, according to the chief executive officer of the hybrid carrier formed by last fall's merger of USAirways and America West. Doug Parker even predicts a profit this year – an unlikely prospect for either line before they joined forces last Sept. 27.

He said the merger should cut costs by $175 million in 2006, with an extra $25 million in savings through the renegotiation of post-merger supplier contracts. USAirways lost $261 million in the fourth quarter of 2005 but that negative is expected to turn into a positive as the full impact of the merger takes hold.

He acknowledged, however, that not all aspects of the merger are obvious to passengers. For example:

• The airlines, still flying independently, won't operate exclusively under the better-known USAirways name until sometime next year;

• The two carriers, though side-by-side in most of the 38 airports they both serve, operate in separate locations in Dallas, Dulles, Chicago, Houston, Minneapolis, Newark, and New Orleans;

• Repainting the line's 384 planes with the new post-merger logo is a slow process that won't be finished until 2009' and

• Both carriers still maintain independent websites.

In fact, the leading example of the USAirways-America West blend is the hefty inflight magazine, produced by Pace Communications of Greensboro, North Carolina. Now called USAirways Magazine, it replaced Attache, the airline's former inflight, in January.

The new airline, based in the old America West headquarters in Tempe, AZ, has also made progress blending the marketing and management functions of the two carriers.

But there's still no decision as to which of the three unions that represented mechanics and ramp workers will serve the same function for the new USAirways. That decision is up to the National Mediation Board, which is likely to let workers decide by ballot.

One thing is certain: the merger almost certainly salvaged USAirways, which had been under the protection of bankruptcy courts, and also provided a shot in the arm to America West, previously a struggling discount carrier.

Geographically, the merger made since too, since USAirways maintained hubs in Philadelphia, Pittsburgh, and Charlotte, while America West hubs were located in Phoenix and Las Vegas.

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