akjetBlue
Posts: 777
Joined: Wed Dec 03, 2003 1:59 am

The Start Of The End For US Airways...

Thu Jan 15, 2004 1:25 am

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
Express network.

"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.
Save a horse! Ride a Cowboy!
 
RJNUT
Posts: 1182
Joined: Thu Dec 30, 1999 1:58 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 1:32 am

How is this the "start of the end"?

It seems like a logical and sensible move to shore up their feeder system.
 
Ryefly
Posts: 1324
Joined: Wed Jun 21, 2000 7:56 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 1:37 am

Actually, after reading that article, I don't think this news points as a sign to "the start of the end of US Airways". I think this is good news by pointing them in the right direction. This is something that should have been done a long time ago in my opinion.
 
Dasheighty
Posts: 304
Joined: Wed Nov 03, 1999 1:54 pm

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 1:39 am

I dont get it im missing something  Confused
 
kyair
Posts: 339
Joined: Sat Jan 10, 2004 5:51 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 1:53 am

This makes sense! I, too, see this as a positive sign. In some topics yesterday I referenced the loan covenants US must meet in the first six months of this year. This move should help efficiency, which will help reduce costs and help meet those covenants.
Don't cry because it's over, smile because it happened - Dr. Seuss
 
airways6max
Posts: 474
Joined: Sat Aug 09, 2003 6:22 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 2:33 am

I think it's very inefficient to have nine carriers operate a commuter network. Seems that consolidating them is just common sense. There's been a lot of talk about US Airways going under, but they may pull through yet.
 
Leskova
Posts: 5547
Joined: Wed Oct 08, 2003 3:39 pm

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 2:46 am

Seems like people will find something pointing to US Airways' doom wherever they want to find it... they're about to be admitted to the Star Alliance as a full member: another sign of impending doom???

As others have said - the system they have now is inefficient, they're improving it: where's the problem?
Smile - it confuses people!
 
DeltaRules
Posts: 3696
Joined: Sat Sep 01, 2001 11:57 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 2:56 am

I agree with what's been said above- this is more positive then negative. This isn't the "beginning of the end"...if the Shuttle had been sold, I'd then agree. They're condensing their Express carriers...the article said that "but it is inefficient to have two wholly owned Dash-8 operators", which is true. Why have 2 when you can condense Allegheny & Piedmont into one, which is what looks like is going to happen.

Can anybody tell me why it seems like some of the people on here actually want US Airways to go under?

DeltaRules
A310/319/320/321/333, ARJ, BN2, B722/73S/733/734/735/73G/738/739/744/757/753/767/763/764/777, CR1/2/7/9, DH6, 328, EM2/ERJ/E70/E75/E90, F28/100, J31, L10/12/15, DC9/D93/D94/D95/M80/M88/M90/D10, SF3, SST
 
PiedmontGirl
Posts: 1112
Joined: Mon Nov 24, 2003 2:39 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 3:00 am

I think this sounds like something that should have been done years ago. This is a good step in the right direction and gives me a glimmer of hope that US may survive.

As ill with US as I may be on occasion, I have lots of friends who work there. I would hate to see them out of jobs at this stage of the game.

The combination of these two Express carriers doesn't sound gloomy to me at all.
 
Adam T.
Posts: 796
Joined: Mon Jun 05, 2000 7:01 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 3:09 am

To answer DeltaRules question- this is an aviation discussion board. You are going to have people that love this airline and hate that airline.

Personally...I love US Airways, its one of my favorite airlines, and I don't want to see it die at all.
But, there are people on here that would like to see that happen  Sad , which is sad but that is there opinion.
 
Adam T.
Posts: 796
Joined: Mon Jun 05, 2000 7:01 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 3:12 am

I forgot to add this in to my post above......I'm not being sarcastic, I know it sounds like I am but i'm not ......didn't want to offend anyone  Smile  Smile

Adam
 
USAIRWAYS321
Posts: 1705
Joined: Wed Jul 11, 2001 4:31 pm

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 9:24 am

I believe this move is done for 2 reasons: One, it is more efficient to operate PSA and Allegheny as 1 airline rather than two, if they can't sell it. Two, one combined unit is mroe attractive to prospective buyers than two individual ones are.

Brett
 
EddieDude
Posts: 6215
Joined: Fri Nov 14, 2003 10:19 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 9:40 am

I agree this is a positive step. I guess that the reason why Akjetblue wrote "the start of the end" as the title of the thread is that this can also be seen as a desperate attempt to survive via cost-cutting at a time when there is a general perception that all is lost no matter what USAirways does.
Next flights: MEX-LAX AM 738, LAX-PVG DL 77L, SHA-PEK CA 789, PEK-PVG CA A332, PVG-ORD MU 77W, ORD-MEX AM 738
 
haveric
Posts: 1219
Joined: Fri Jan 05, 2001 9:31 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 9:55 am

This is a positive step that has been rumored around US circles for awhile. More consolidation of contract and in-house express carriers is needed. An entire jettison of Shuttle America is warranted, but that's for another thread.
 
akjetBlue
Posts: 777
Joined: Wed Dec 03, 2003 1:59 am

RE: The Start Of The End For US Airways...

Thu Jan 15, 2004 11:32 am

Hats off to Eddiedude...you read my mind
Save a horse! Ride a Cowboy!
 
haveric
Posts: 1219
Joined: Fri Jan 05, 2001 9:31 am

RE: The Start Of The End For US Airways...

Fri Jan 16, 2004 12:27 am

Why is a consolidation of long-duplicative operations desperate? Corporations do this every day -- that's how you cut cost!!! Nothing unusual about this at all.
 
iflyatldl
Posts: 1796
Joined: Mon Nov 03, 2003 1:41 am

RE: The Start Of The End For US Airways...

Fri Jan 16, 2004 1:28 am

Sounds like they are going the way that Delta Connection went when they combined ASA and Comair(but let them keep their own identities). If it helps drive down costs, go for it!  Smile
Ah, Summer, Fenway Park, Boston Red Sox and Beer.....