TrueExpert
Topic Author
Posts: 17
Joined: Tue Jun 08, 1999 8:59 am

Any Synergies To A US Airways-America West Linkage

Thu Nov 15, 2001 12:38 pm

I am interested in what you all think about an alliance/merger between US Airways and America West. Note, I am not speculating about nor asking anyone else to speculate about the actual likelihood of such a linkage-- in the distant future or in the immediate term. Rather, given the current financial state of the industry, do you all think there are possible synergies between the carriers (e.g. route structures: US' market dominance in the eastern U.S. meshing well w/ HP presence in the west, OR fleet commonality). In other words, putting aside for the moment their weakened financial conditions, would the differences in corporate cultures be a serious impediment towards integration? Thoughts, ideas?
 
jkarry
Posts: 43
Joined: Fri Nov 02, 2001 11:22 pm

RE: Any Synergies To A US Airways-America West Linkage

Thu Nov 15, 2001 12:47 pm

There fleets fit real well together with both trying to become an all airbus fleet. I wonder what type of engines HP has on their airbus because I think US has CFM. I think the route structure complements each other very well. Is PHX HP's only base?
 
haveric
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Joined: Fri Jan 05, 2001 9:31 am

RE: Any Synergies To A US Airways-America West Linkage

Thu Nov 15, 2001 2:06 pm

America West also has hubs in Las Vegas (large) and Columbus, Ohio (smaller, but growing).
 
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OzarkD9S
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RE: Any Synergies To A US Airways-America West Linkage

Thu Nov 15, 2001 2:15 pm

moot now, but i always thought a US/TW/HP merger have been a great match. Now, US/HP could work if they rationalize pay scales to deal with incresed exposure to WN.
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Ryefly
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Joined: Wed Jun 21, 2000 7:56 am

RE: Any Synergies To A US Airways-America West Linkage

Thu Nov 15, 2001 3:15 pm

The two airlines would be a very good match if the deal was done right and US had the cash. US Airways desperately needs to expand west to have a more balanced route structure and this could be a quick fix. Although they have bought airlines with western hubs before and it has failed. I think if they were ever in the position to do it they wouldn't make the same mistake. The two airlines common fleet types does make a merger enticing, but very unlikely during these uncertain times.

On a side note, if the two were to merge, they would still have a very difficult time competing against Southwest.
 
737-990
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Joined: Tue Apr 04, 2000 3:41 pm

RE: Any Synergies To A US Airways-America West Linkage

Thu Nov 15, 2001 8:18 pm

While both airlines look to be going all Airbus, US has their A319/320/321s with CFMI engines, while HPs A319/320s are IAE powered. I don't know how much difference this would make, but at least the crews can be cross utilized.

Just a side note: US had a westcoast presence when it bought PSA. In less than 5 years it completely abandoned all of its PSA routes. It would also be interesting to merge the major airline with the lowest cost structure (HP) with the major with the highest (US).
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