US AIRWAYS GROUP, INC. TO
CONSOLIDATE PIEDMONT AND
ALLEGHENY AIRLINE OPERATIONS
ARLINGTON, Va., Jan. 14, 2004 -- US Airways Group, Inc. announced today that it
will consolidate the operations of two of its wholly owned subsidiaries,
Allegheny Airlines Inc., and Piedmont Airlines Inc., with a target effective
date of March 31, 2004.
As part of the transaction, Piedmont Airlines will operate the entire de
Havilland Dash-8 fleet. Allegheny and Piedmont currently operate 82 Dash-8s,
with 41 flown by Allegheny and 41 flown by Piedmont, but the Dash-8 fleet size
will likely decrease as more regional jets are brought into the US Airways
"We have an ongoing review of every aspect of our business to find ways to
operate more efficiently and compete more effectively, and the consolidation of
these two carriers will optimize the assets of both companies," said Bruce
Ashby, president of US Airways Express. "Turboprop aircraft will still have a
role in our network, but it is inefficient to have two wholly owned Dash-8
operators with duplicative overhead functions for a shrinking part of the
company. We believe it provides the best outcome for our employees."
Members of the US Airways Express management are meeting today with
representatives of the respective organized labor groups for Allegheny and
Piedmont to share details of the proposed consolidation.
The preferred option is to merge Allegheny into Piedmont, allowing for the
orderly transition of the Allegheny employees into Piedmont.
The other and less-preferred option would be a partial asset transfer to
Piedmont, the liquidation of the remaining Allegheny assets, and the shutdown of
the Allegheny operation. Ashby said this option can be avoided through the
timely conclusion of labor agreements about representation and work rules.
"Our focus is going to be on the orderly consolidation of the two carriers,
because that is clearly in the best interest of our employees, customers and
shareholders. The timeline is short because we believe it is best to resolve
issues quickly so that our employees have a clear understanding of what the
future holds for them," said Ashby.
The US Airways Express network comprises nine carriers operating more than 2,000
flights daily, serving nearly 150 destinations in the U.S., Canada, and the
Caribbean. The three wholly owned subsidiaries are Allegheny Airlines, Piedmont
Airlines and PSA Airlines and the affiliate carriers are Air Midwest, Chautauqua
Airlines, Colgan Air, Mesa Airlines, Shuttle America and Trans States Airlines.