haveric
Posts: 1219
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It's Official - US Airways / America West To Merge

Fri May 20, 2005 4:54 am

http://news.moneycentral.msn.com/bre...?feed=OBR&Date=20050519&ID=4464778

NEW YORK (Reuters) - U.S. Airways Group Inc. (UAIRQ) and America West Holdings Corp. (AWA) are set to announce an agreement to merge after the close of trading on Thursday, business news television station CNBC reported.

An industry source told Reuters last week that a merger announcement was close, adding that the deal would probably begin as a marketing alliance and unfold in stages.

© 2005 Reuters

[Edited 2005-05-19 21:55:50]
 
lijnden
Posts: 528
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RE: It's Official US Airways / America West To Merge

Fri May 20, 2005 4:56 am

What will be the name?

US West?
America Airways?

Hope it will bring a lot of positiveness to the industry.
Be kind to animals! Next trip: ORF-ORD-NRT-IAH-ORF
 
ahlfors
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 4:57 am

Well, considering the route structure, maybe "America East and West"?
 
Joost
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 4:58 am

The name will be US Airways. There are quite a few threads about it, where this is stated. IMO it's a good choice, as the US Airways-brand is better known than the AWA-brand.

It's an interesting situation. The most interesting part is, I think, how the UA codeshare will develop and what the US gouvernement will allow. I can imagine that they won't be allowed to codeshare as much as they do now, but they also need to codeshare less as they have a more extenisve network.
 
QuestAir
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 4:59 am

I recall reading that the name will be US Airways, but that AW CEO Parker will be the new CEO and that the HQ of US will move to Tempe, AZ.
'Do we carry rich people on our flights? Yes, I flew on one this morning and I�m very rich.' - Michael O'Leary
 
chrisa330
Posts: 545
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:01 am

Until I see a press release from either company I wouldn't exactly call it official. Although I expect this to be soon as the markets have now closed.
 
commavia
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:01 am

CNBC just reported that the press conference will begin "momentarily." CNBC said they will cover it live.
 
UAL-Fan
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:02 am

Last night I flew America West and their employees are being told they will be the ones to keep their name. I think that's better as US Airway does not have the best reputation after what their employees pulled this past Holiday Season.
 
potomac
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:05 am

sheesh..why dont we just wait until THEY tell us what the name will be, where HQ will be located, and any other details...
 
vivavegas
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:09 am

Name: US Airways

HQ: Tempe, AZ

Source: CNBC
MKE / EYW / LAS - The true trifecta of aviation!
 
haveric
Posts: 1219
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:10 am

CNBC also reports that trading has halted on AWA stock "Pending News."
 
AAFLT192
Posts: 7
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:11 am

Trading in AWA shares was halted at the closing of the bell, presumably in advance of an announcement.
 
upsmd11
Posts: 643
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:13 am

I know this has been discussed ad naseum on the forum but I haven't really seen anybody talk about where service may be improved with the new airline. For example, here in SDF you must fly to CLT or PHL for most of your westbound trips. For an A-netter like me this doesn't really matter. It would be great, though, to have service to PHX and then connecting service to west coast cities. Right now WN has the dominance no this route and is not challenged on SDF - PHX or SDF - LAS. The only other airline to fly even remotely west is AA to DFW and NW to MSP.

I only hope this is good for the industry. I have family who works for US in Charlotte and a friend who works for HP in PHX. So I want them both to be secure.

Regards,
John
 
USairways16BWI
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:15 am

its on CNBC right now!!! my eyes are glued to the tv!!!!
 
Midway2AirTran
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:27 am

Quoting UsAirways16bwi (Reply 13):
its on CNBC right now!!! my eyes are glued to the tv!!!!

If I am watching CNBC now at 1625 EDT, I don't see it, did I miss it?
"Life is short, but your delay in ATL is not."
 
keesje
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:27 am

NEW YORK (Reuters) - Shares of America West Airlines (AWA.N: Quote, Profile, Research) were halted in over-the-counter trading as the market expected the carrier to announce it has agreed to merge with bankrupt U.S. Airways (UAIRQ.OB: Quote, Profile, Research) .
Business news television station CNBC reported that the two carriers are set to make the announcement after the close of trading on Thursday
"Never mistake motion for action." Ernest Hemingway
 
lijnden
Posts: 528
Joined: Wed Apr 02, 2003 1:34 am

RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:28 am

I don't find anything on Astra or Hotbird either...
Be kind to animals! Next trip: ORF-ORD-NRT-IAH-ORF
 
keesje
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:31 am

CNBC said the carriers had raised $1 billion from various investors to cover operating expenses as part of the transaction.

Investors in the deal could include the world's leading aircraft manufacturer Airbus, Air Canada's parent company ACE Aviation Holdings Inc. and General Electric Co.
"Never mistake motion for action." Ernest Hemingway
 
travelin man
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:33 am

Quoting Joost (Reply 3):
The name will be US Airways. There are quite a few threads about it, where this is stated. IMO it's a good choice, as the US Airways-brand is better known than the AWA-brand.

Yeah, but it is better-known because of financial difficulties, luggage fiascoes, employee unrest, and crashes. Not exactly the stuff of a "good brand".
 
ouboy79
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:33 am

Quoting Keesje (Reply 17):
CNBC said the carriers had raised $1 billion from various investors to cover operating expenses as part of the transaction.

Actually they reported $2 billion. It appears who ever issued the paper release with this information got the number wrong. We'll know which is right eventually.
 
ouboy79
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:35 am

Quoting Travelin man (Reply 18):
Yeah, but it is better-known because of financial difficulties, luggage fiascoes, employee unrest, and crashes. Not exactly the stuff of a "good brand".

Same could have been said for Northwest, Delta, Continental, America West, American,...need go on?
 
gigneil
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:37 am

Quoting UAL-Fan (Reply 7):
Last night I flew America West and their employees are being told they will be the ones to keep their name

No they aren't. Every single source of news has confirmed they are going to use the US Airways brand.

N
 
UA744Flagship
Posts: 1433
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:38 am

Expect the unexpected from what I've heard.

Supposedly, the devil is in the details, and the details are quite surprising. I'm waiting myself...
no wire hangers!
 
Braniff727
Posts: 656
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:39 am

Quoting Ouboy79 (Reply 20):
Same could have been said for Northwest, Delta, Continental, America West, American,...need go on?

I don't want to sound contradictory, but has America West had a crash? I don't remember one, but I certainly can be proven wrong!
Climbing
 
kl911
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:42 am

Quoting Travelin man (Reply 18):
Yeah, but it is better-known because of financial difficulties, luggage fiascoes, employee unrest, and crashes. Not exactly the stuff of a "good brand".

We know that, But tourists don't........
 
NW727251ADV
Posts: 301
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:43 am

This merger makes absolutely NO SENSE to me now. If they're still going to use the US Airways brand, other than an expanded route network, what insentive would Joe Somebody have to fly on US??? Most people have a negative conotation affiliated with the name "US Airways" and everybody in my family certainly remembers the infamous December debacle so why on earth would any unknowledgeable, NON-AVIATION enthusiast want to fly with US???
NWA   N O R T H W E S T A I R L I N E S
 
gigneil
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:48 am

Because nobody cares. They look for a fare and a flight, and they buy whatever pops up.

N
 
NYC777
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:49 am

Quoting KL911 (Reply 24):
We know that, But tourists don't........

Sure they do...it has been well publicizied PR disaster for US
That which does not kill me makes me stronger.
 
ouboy79
Posts: 4111
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:49 am

I'm shocked at how many people seem to forget when Northwest had problems even keeping their planes in the air it seemed back in the 80s...Or double bankruptcies by CO.

Brands can be repaired...we've seen it time and time again.
 
potomac
Posts: 692
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:51 am

wouldn't it make more sense to hold back any proclamations about if this is a good or a bad thing until we officially hear specific details from the source about plans for routes/hubs, org. structure, branding, fleet, etc.?! we have no idea yet.
 
ORD777
Posts: 252
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:51 am

What will the rank of the new airline be in term of size compared to the other U.S. majors?
 
Braniff727
Posts: 656
Joined: Sat Sep 23, 2000 2:25 am

RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:54 am

Quoting Ouboy79 (Reply 28):
when Northwest had problems even keeping their planes in the air it seemed back in the 80s...

What are you referring to? There was the crash of NW 255 in 1987. There was the 727 that hit the DC9 in heavy fog in 1990.

Two accidents, while bad, does not constitute having problems keeping planes in the air.
Climbing
 
Danny
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:57 am

I wish them all the best. With the financing obtained and smart plan they have a chance to make it. I hope that merger will not mean adding one to another but bringing a new strategy and reduction of capacity.

With Airbus providing financing I would expect that US will retire those crappy old 737 and A320 family will be brought in since both airlines already use A320s (I know that with different engines but still).
 
NW727251ADV
Posts: 301
Joined: Sun May 01, 2005 5:55 pm

RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:59 am

Quoting Gigneil (Reply 26):
Because nobody cares. They look for a fare and a flight, and they buy whatever pops up.

So when did you become the offical spokesman for the 286 million people living in the United States??? Maybe YOU don't care but most people I know who know ZIP about aviation nor really care, proclaimed they would NEVER fly US Airways after all the controversy. And previous US Airways customers have commented "NEVER AGAIN!".
NWA   N O R T H W E S T A I R L I N E S
 
hz747300
Posts: 1908
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:59 am

Why would Airbus be financing a merger and filing for launch aid? Especially a merger with a bankrupt airline involved.

I know they are two different activities, but Airbus is one entity, and has chosen to finance (granted in the scheme of things $250M, the rumored amount, is not that much) this deal. Yet, in the same year has saw fit to put tax payers in Europe/UK at risk by having them loan money to launch an aircraft.

The proper authorities should investigate fully before granting any launch aid or state aid (in the forms of grants or loans or otherwise). It is awfully easy to spend someone else's money where you are not wholly accountable for the activities you choose to participate in.

Back to the merger, being a native Arizonan I have strong state-pride in AWA and I would hate to see an Arizonan institution pulled down by a bad airline and get sucked into their web.
Keep on truckin'...
 
Midway2AirTran
Posts: 847
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 5:59 am

Still waiting to see something offical, anybody catch anything yet? The CNBC report also states that "unidentified sources have indicated that it will be a stage-by-stage deal", so its obvious that there should be no drastic changes in the short-run if this is true. It only makes sense IMO to do it gradually, probably over years of integrating the two. US execs will probably stay onboard for a while to implement the merger, they were given a large bonus recently to do so.
"Life is short, but your delay in ATL is not."
 
col
Posts: 1692
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:02 am

Danny,

Agree with you. A change is better than a rest, and US and its employees could have been in for a long rest. This could be a smart move on both airlines parts to combat WN and the LCC base. US have a good International Product also, just need to change out the old 767's.

Good luck to both Parties and see ya on Monday US.
 
USAFHummer
Posts: 10261
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:03 am

Is the government going to object to this at all, kinda like they did with the US/UA merger attempt a few years back?

Greg
Chief A.net college football stadium self-pic guru
 
EMBQA
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:07 am

As just reported on the news here it PIT:

2 to 3 years to combine the airlines into one...
USAirways will be the 'surviving' airline...
Both airlines Airbus maintenance work will shift to PIT...
"It's not the size of the dog in the fight, but the size of the fight in the dog"
 
gigneil
Posts: 14133
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:08 am

Quoting NW727251ADV (Reply 33):
Maybe YOU don't care but most people I know who know ZIP about aviation nor really care, proclaimed they would NEVER fly US Airways after all the controversy

Nobody cares. Seriously. Your view of the world is not representative of everyone.

The average American clicks on what comes up. Anyone with any marketing experience knows that.

Quoting HZ747300 (Reply 34):
Why would Airbus be financing a merger and filing for launch aid?

Because they can, and it would be stupid of them not to.

N
 
NW727251ADV
Posts: 301
Joined: Sun May 01, 2005 5:55 pm

RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:08 am

Quoting USAFHummer (Reply 37):
Is the government going to object to this at all, kinda like they did with the US/UA merger attempt a few years back?

I'm definitely not an EXTREME avaition enthusiast so I'm sure there will be something questionable about my response to your question and I'm welcome for friendly corrections but the problem with the UA/US merger was United was already a MEGA-airline (Pre-9/11) and other U.S. air carriers were extremely threatened that United--which was then already the largest airline in the world--would become a "Mircosoft" of the aviation industry. Airlines, particularly AA I believe, fought that merger HARD!

[Edited 2005-05-19 23:09:26]
NWA   N O R T H W E S T A I R L I N E S
 
Midway2AirTran
Posts: 847
Joined: Wed Jul 16, 2003 7:34 am

RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:10 am

Quoting HZ747300 (Reply 34):
Back to the merger, being a native Arizonan I have strong state-pride in AWA and I would hate to see an Arizonan institution pulled down by a bad airline and get sucked into their web.

Doug Parker has performed quite well in the past at HP, naturally, he wouldn't be getting involved in this if there is no good plan behind it. He's a rising force in the industry and also has his own reputation at stake too. It is obvious that other important figures agree with Parker considering that they have received the investment needed with the current state of the industry.
"Life is short, but your delay in ATL is not."
 
NW727251ADV
Posts: 301
Joined: Sun May 01, 2005 5:55 pm

RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:12 am

Quoting Gigneil (Reply 39):
The average American clicks on what comes up. Anyone with any marketing experience knows that.

So this is why US Airways is stone's throw away from collapse and their hard-pressed for this HP merger??? If "nobody cares" as you so candidly put it, then US should be in no financial trouble because they have very competative fares in certain markets so people would just dismiss all the problems plaguing US Airways.
NWA   N O R T H W E S T A I R L I N E S
 
AussieItaliano
Posts: 343
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:13 am

Greg,

I doubt that the DOJ will object. Back in 2000 they objected to the UA/US merger based on the idea that UA was already the largest carrier and that by it's acquisition of US, fares would be higher (than in 2000) and passengers would have less of a choice. Remember that the industry wasn't ailing back then like it is now.

This proposed merger, however, would create the number 6 carrier, and given the state of the industry, I don't think that there's any threat of monopolisation or a real lack of competition. On the contrary, we have overcapacity.
Third Runway - LHR, Second Runway - LGW, Build Them Both!!!
 
MD11LuxuryLinr
Posts: 1311
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:13 am

Quoting NW727251ADV (Reply 33):
Maybe YOU don't care but most people I know who know ZIP about aviation nor really care, proclaimed they would NEVER fly US Airways after all the controversy. And previous US Airways customers have commented "NEVER AGAIN!".

People get pissed. Time heals. If and when it comes down to it.. be it because of money or a shorter trip time, they'll fly US again.
Caution wake turbulence, you are following a heavy jet.
 
col
Posts: 1692
Joined: Thu Nov 27, 2003 2:11 am

RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:15 am

Quoting NW727251ADV (Reply 33):
So when did you become the offical spokesman for the 286 million people living in the United States??? Maybe YOU don't care but most people I know who know ZIP about aviation nor really care, proclaimed they would NEVER fly US Airways after all the controversy. And previous US Airways customers have commented "NEVER AGAIN!".



Quoting Gigneil (Reply 39):
Nobody cares. Seriously. Your view of the world is not representative of everyone.

The average American clicks on what comes up. Anyone with any marketing experience knows that.

Have a quick review on US Load Factors and passenger growth. I think you will find what Neil is saying is correct. I will be boarding US on Monday for the reason of price (not cheap I might add). I have flown US quite a few times this year, and they are similar in service to all mainline carriers, except their 737's need some TLC.

Col
 
Junction
Posts: 489
Joined: Sat Mar 05, 2005 2:50 am

RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:16 am

Quoting NW727251ADV (Reply 33):
most people I know who know ZIP about aviation nor really care, proclaimed they would NEVER fly US Airways after all the controversy.

What about the huge mess stirred up by NW in DTW 5 or 6 years ago where everyone had to wait 6-12 hours for gates during a two-day snow storm? It made bigger headlines then the US baggage deal, and no one was ever going to fly NW again. It was such a huge controversy that there was even legislation passed to compensate passengers if it should ever happen again.
Won't take long for people to forget about the US baggage deal either I suppose.
 
haveric
Posts: 1219
Joined: Fri Jan 05, 2001 9:31 am

RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:17 am

NEWS RELEASE:

http://www.shareholder.com/americawe...ReleaseDetail.cfm?ReleaseID=163980

PHOENIX, May 19, 2005 /PRNewswire-FirstCall via COMTEX/ -- America West Holdings Corporation (NYSE: AWA) and US Airways Group, Inc. (OTC Bulletin Board: UAIRQ) today announced an agreement to merge and create the first full-service nationwide airline, with the consumer-friendly pricing structure of a low-fare carrier. Operating as the first national low-cost (LCC) hub-and-spoke network carrier, customers can look forward to simplified pricing, international scope, access to low-fare service to over 200 cities across the U.S., Canada, Mexico, the Caribbean and Europe, and amenities that include a robust frequent flyer program, airport clubs, assigned seating and First Class cabin service.

click link for more details
 
ouboy79
Posts: 4111
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RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:20 am

That should put a few of the questions to rest now.
 
N766UA
Posts: 7843
Joined: Thu Jul 29, 1999 3:50 am

RE: It's Official - US Airways / America West To Merge

Fri May 20, 2005 6:22 am

How long's this gunna take to work its way through the courts? Why in the heck would HP wanna merge with a bankrupt airline, anyway?
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