US Airways And America West To Merge

777ER · Fri May 13, 2005 5:23 pm

US Airways and America West to merge, industry analysts have said. Spokesmen for both airlines have not confirmed nor denied the merge.

http://www.bradenton.com/mld/bradenton/business/11633042.htm

scotron11 · Fri May 13, 2005 5:38 pm

I hope it does happen as consolidation is sorely needed right now.

LAXintl · Fri May 13, 2005 5:41 pm

It does seem a deal is getting closer and closer.

ALPA national this week meet with and was briefed regarding a potential deal. Union has accordingly started the ball rolling by starting to form a merger committee and assigning legal counsel.

lehpron · Fri May 13, 2005 5:51 pm

Which carrier takes the name with the merge?

777ER · Fri May 13, 2005 6:08 pm

Quoting Lehpron (Reply 3):
Which carrier takes the name with the merge?

Most likly part of both airlines names will be put together to form the new airlines name, like US America Airways or America US Airways

AV8AJET · Fri May 13, 2005 6:09 pm

Which carrier takes the name with the merge?

Pretty sure they will take the USAirways name...America West will be dropped. A little like when ValueJet purchased AirTran but then retained the AirTran name because it was more "well" known.

HT · Fri May 13, 2005 6:12 pm

Quoting Lehpron (Reply 3):
Which carrier takes the name with the merge?

If it´s a merger on equal parts: "US West" ?
But that might be not a good name when trying to attract pax from outside the U.S. as people might think "Oh, they fly only in the West of the U.S." ... Reminds me of the rebranding from "British Midland" to (finally - as of now) "bmi" Wink

Looking from a greater perspective (i.e. from outside the U.S./ being non-biased as I´ve used them both several times) I think branding as "US Airways" would be the best choice in the long term.

Comments?

Holger

lehpron · Fri May 13, 2005 6:13 pm

Quoting AV8AJET (Reply 5):
Pretty sure they will take the USAirways name...America West will be dropped. A little like when ValueJet purchased AirTran but then retained the AirTran name because it was more "well" known

Quoting 777ER (Reply 4):
Most likly part of both airlines names will be put together to form the new airlines name, like US America Airways or America US Airways

Thanks for the quick reply dudes. "US Westways" (westwards) could have been funnier though. Smile

lightsaber · Fri May 13, 2005 6:13 pm

Quoting AV8AJET (Reply 5):
A little like when ValueJet purchased AirTran but then retained the AirTran name because it was more "well" known.

Ummm... More like the Valujet name had negative value at the time...

On topic: I believe IF this happens, the US air name will be kept. But I keep reading threads on this merger and just don't believe it will happen. Where is the value for America West? US air is losing money too quickly for the little cash that America West possesses to stem the tide.

Lightsaber

zvezda · Fri May 13, 2005 6:43 pm

Quoting Kevin P. Mitchell doesn't convince me that the rumors are true. Why would America West, who are breaking even IIRC, want to merge with US Air?

I agree with those who expect that, should such a merger occur, that the name would probably be US Air(ways). The post-merger airline would want to remain in the Star Alliance and US Air is a better name from a marketing perspective.

7LBAC111 · Fri May 13, 2005 6:45 pm

Quoting HT (Reply 6):
I think branding as "US Airways" would be the best choice in the long term.

Perhaps - but outside of the USA, the fact that US are in dire straights financially might hinder use of this name.?

7LBAC111

767-332ER · Fri May 13, 2005 8:34 pm

General public already associates US Airways=Financial losses;shaky investment...etc...

My point is that if they are to merge and adopt its name, people in the general public who do not involve themselves as deeply into aviation news as we do, might still have that same negavite view with the name US Airways and then will opt not to fly them, causing a very negative effect for both merging parties...it's like sleeping with someone that has the flu, you're bound to catch it. Wink

Regards

mdl21483 · Fri May 13, 2005 9:33 pm

Quoting 767-332ER (Reply 11):
General public already associates US Airways=Financial losses;shaky investment...etc...

I dont think that at all. To me I associate US with a survivor. They've survived long enough already and in my opinion have earned their place as a mainstay. Now the management may be a different story, but the employees, the support workers, the airline in general is still a good airline. I'd rather fly on a battle born survivor than a backstabbing silver bullet. I'll prolly always be upset with what AA did to all those TW workers after the merger.

~Melanie~

September11 · Fri May 13, 2005 9:56 pm

the beginning of the end for America West???

drerx7 · Fri May 13, 2005 10:22 pm

My FLightFund miles?

HT · Fri May 13, 2005 10:29 pm

Quoting Drerx7 (Reply 14):
My FLightFund miles?

... should be converted into the new system. At least that´s what AF and KL did when they "merged", with the new FF-programm becoming active 06-JUn-2005 IIRC.

tothestars · Fri May 13, 2005 10:34 pm

Quoting MDL21483 (Reply 12):
dont think that at all. To me I associate US with a survivor. They've survived long enough already and in my opinion have earned their place as a mainstay. Now the management may be a different story, but the employees, the support workers, the airline in general is still a good airline. I'd rather fly on a battle born survivor than a backstabbing silver bullet. I'll prolly always be upset with what AA did to all those TW workers after the merger.

~Melanie~

Battle born survivor from TW here and thank you for your support Melanie!

FLAIRPORT · Fri May 13, 2005 10:39 pm

In my opinion, I don't like it.
First of all, HP is doing well and hasa thing going for them. If they turn into USAirways, I don't think it will work for them. On the other side, if USAirways turns into America West, it might be confusing.

Flipping the coin, both airlines need presence on the other coast, so that would be good.

I just think it will turn out to be too complicated, to established carriers merging. Unless fares go down here at FLL, I will not be too happy with this.

slider · Fri May 13, 2005 10:40 pm

Can anyone explain to me the benefits of such a merger?

DAYflyer · Fri May 13, 2005 10:40 pm

Quoting Lehpron (Reply 3):
Which carrier takes the name with the merge?

According to what I read this am, the name will likely remain US Airways as they are better known, but America West would be the holding company.

US Airways is better known, but I'm not sure if they are better known in a good way or a bad way...

supa7E7 · Fri May 13, 2005 10:42 pm

If this all goes through, HP would be part of Star Alliance - a great thing for the airline and its frequent flier customers.

flyboyaz · Fri May 13, 2005 10:55 pm

Here's a link from AZ Central concerning PAR, a major shareholder of HP and other airlines. Looks like they are interested in the deal.

http://www.azcentral.com/business/articles/0513amwest.html

richardnhsv · Fri May 13, 2005 10:59 pm

According to all the "buzz", the merger will retain the US Airways brand due to a better recognition on international routes. America West will be the administrative part, US Airways will do the flying. I have heard that the two companies have everything prepared and are to present their proposal to the boards of each company on Tuesday, May 17. It's important to note that "ALL" this information is just speculative as both companies have indicated. They both have confirmed merger talks and they both have said that no other announcements will be made until it goes through or not. Just my two cents worth... we'll see. Being a Piedmont Airlines employee, all this is extremely important to me.

tsnamm · Fri May 13, 2005 11:15 pm

like some others in this thread, I don't see whats in this for HP...maybe access to Intl Trans-Atlantic routes?...trying to merge the 2 workforces should be a treat, since HP is mostly non-union and US is one of the most unionized carriers. Big differences in corporate philosophy...what are they going to do about the hubs? PHX,LAS,PHL,CLT seems like a bit too much for an airline of this size...seems like a lot of potential trouble getting this to work, and neither carrier needs any more problems...

DL WIDGET HEAD · Fri May 13, 2005 11:26 pm

Quoting Tsnamm (Reply 23):
since HP is mostly non-union and US is one of the most unionized carriers.

I thought HP is heavily unionized?

Junction · Fri May 13, 2005 11:44 pm

Quoting DL Widget Head (Reply 24):
I thought HP is heavily unionized?

HP is now heavily unionized. Pilots, F/As, Mechanics, ground staff, and possibly even reservations by now are all part of union groups. Originally they were not unionized at all, and took great pride in making that known, but it has all changed.

PlanesNTrains · Fri May 13, 2005 11:48 pm

Quoting Slider (Reply 18):
Can anyone explain to me the benefits of such a merger?

Quoting Flyboyaz (Reply 21):
Here's a link from AZ Central concerning PAR, a major shareholder of HP and other airlines. Looks like they are interested in the deal.

I think the benefits from a breadth-of-service aspect are obvious - both have gaping holes in their route systems in the US that the other is a natural fit for. Additionally, there is a general fleet commonality, though not complete and not without issues.

From a financial perspective, I think we really do need to wait and see. We don't know who the potential investors/contributors would be for sure, and we don't know all the numbers that might be luring the two together.

I'm guessing that when a deal is announced, it will either make much more sense to all of us, or we'll all be shaking our head and sounding the deathwatch. Only a few days to go.

-Dave

drerx7 · Fri May 13, 2005 11:52 pm

So this new carrier will have corporate HQ in Phoenix or Arlington? Any idea of what the fleet will be composed of?

DrupyUSE · Fri May 13, 2005 11:53 pm

As an employee of Piedmont I'm naturally curious how a potential merger would affect the express division of US. Can anyone tell me what HP's regional fleet and operations are like? What are the likely upsides/downsides for all of us "little people"?

laxtwin · Sat May 14, 2005 12:03 am

The Phoenix newspaper reported the headquarters will remain in AZ.

DrupyUSE · Sat May 14, 2005 12:07 am

Also, does HP use SABRE?

ti717 · Sat May 14, 2005 12:10 am

HP regional = Mesa(CRJ9, CRJ7, CRJ, DH8 and BE1)

flyboyaz · Sat May 14, 2005 12:20 am

Quoting DrupyUSE (Reply 30):
Also, does HP use SABRE?

No we use SHARES, just like CO. It's a pretty good system, we actually use a Windows based interface which makes it easier to use than native SHARES. I hear SABRE is better, but haven't used it myself. Changing over systems would be a disaster I would think. When CO merged with Peoples it was mayhem the first day of ops in EWR...no one knew what the heck they were doing....I imagine we would get training ahead of time if we switched to SABRE.

Cactus739 · Sat May 14, 2005 12:20 am

Quoting Drerx7 (Reply 27):
So this new carrier will have corporate HQ in Phoenix or Arlington? Any idea of what the fleet will be composed of?

Like the other 5 running threads on this, it is only pure 100% speculation on behalf of people on here. The *ONLY* thing that is known to be known, is that the two are talking. Nothing else has been said by either airline.

AussieItaliano · Sat May 14, 2005 12:36 am

If they do merge, the best idea might be to come up with a new name.

cltguy · Sat May 14, 2005 12:44 am

Do you think that CLT will remain the largest Hub in the combined HP/US system?

There are rumors that the new holding company might have its HQ in Charlotte.

asteriskceo · Sat May 14, 2005 12:49 am

"The leader of union pilots at America West Airlines stepped down late last week in the midst of merger talks between the Tempe carrier and bankrupt US Airways."

http://www.eastvalleytribune.com/index.php?sty=41030

"The incentive program comes as US Airways is in accelerated talks to merge with America West Holdings."

http://www.washingtonpost.com/wp-dyn...le/2005/05/09/AR2005050901324.html

OH! And look at this, Hawaiian may join this merge also:

"said that the two airlines are talking about expanding to Hawaii. Neither carrier currently does."

http://pacific.bizjournals.com/pacific/stories/2005/05/09/daily6.html

Danny · Sat May 14, 2005 1:00 am

Apart from the merger idea - do they have any business plan? Any idea what to do after the merger? The problems will not fade away.

mdl21483 · Sat May 14, 2005 1:14 am

Quoting Asteriskceo (Reply 36):
Hawaiian may join this merge also:

Oh that would be such a sight to see the HA 763's doing long hauls to BWI and PHL! :P

Quoting ToTheStars (Reply 16):
Battle born survivor from TW here and thank you for your support Melanie!

Quite Welcome! I just hope that if the alleged merger yields a new color scheme, that they have one as beautiful as was TW of the 90s. That's my favorite scheme.

~Melanie~

UALramperORD · Sat May 14, 2005 1:14 am

lets just hope it goes more smooth than the AA/TW merger. What they should do is merge the seniority list, not staple the smaller airline to the bottom like AA did. Good luck to employees in both airlines.

SBN580 · Sat May 14, 2005 1:25 am

Quoting 767-332ER (Reply 11):
..it's like sleeping with someone that has the flu, you're bound to catch it.

Precisely! yes

flick70 · Sat May 14, 2005 1:25 am

I know this is minor part of the merger...but does anyone think that part of the merger would involve some re-branding? Specifically, a new livery?

highliner2 · Sat May 14, 2005 1:37 am

AA/TW was NOT a merger, AA bought a bankrupt and dying TWA. They were under no obligation to merge the seniority list (doesn't necessarily mean that wasn't the right thing to do), with this HP/US deal appearing to be "true" merger there will be some additional labor issues to be dealt with.

slider · Sat May 14, 2005 2:07 am

Quoting Danny (Reply 37):
Apart from the merger idea - do they have any business plan? Any idea what to do after the merger? The problems will not fade away.

My point exactly.

I asked earlier in this thread what exactly is the benefit of this merger?

To date, no one's offered an answer. Too keyed up worrying about where the new HQ will be, what the livery might be, what name it'll be called to worry whether this makes any damn sense whatsoever outside the immediate and obvious geographical market sense.

laxtwin · Sat May 14, 2005 2:20 am

How would we know what the business plan is going to be when neither party is offering any info? I am thinking that might be announced if a merger is announced. Smile

tockeyhockey · Sat May 14, 2005 2:36 am

Quoting 777ER (Reply 4):
Most likly part of both airlines names will be put together to form the new airlines name, like US America Airways or America US Airways

that's a good one! Wink

whlinder · Sat May 14, 2005 2:42 am

The new name will be 'Financially Troubled US Airways' or 'Struggling US Airways.'

Right now it is 'Bankrupt US Airways', at least every time I see or hear a reference to US in the media.

United737522 · Sat May 14, 2005 2:43 am

So, what will happen with Star Alliance, obviously it will be dropped by US, or picked up by HP.

kaitak · Sat May 14, 2005 2:49 am

So, HP is just about breaking even and they're strategy is to merge with the walking dead? What did their shareholders think about this?

I'll tell you one thing, though: Southwest will be breaking open the champagne this evening, because if US goes down and takes HP with it, that'll leave LAS, PHX wide open for new growth (let alone all the new eastern markets WN is breaking into).

What is in it for HP?

dhefty · Sat May 14, 2005 2:55 am

Quoting Slider (Reply 43):
I asked earlier in this thread what exactly is the benefit of this merger?

The benefits, in my view, accrue only to US Airways, not to HP. I think this ploy is a classic example of Rope-a-Dope. US Airways should be allowed to quietly expire, without infecting, possibly fatally, another relatively successful carrier.

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