US Airways & America West Merger - PhillyBlog

regman · #1 (**permalink**) 05-20-2005, 09:46 AM

http://www.msnbc.msn.com/id/7908207/

Quote:

US Airways, America West to merge
New airline to retain US Airways name

TEMPE, Ariz. - US Airways and America West, two struggling airlines that serve opposite sides of the country, are billing their proposed merger as a buffer against the new era of low-cost rivals, high fuel costs and a flood of cheap fares.

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I disagree in part with the assertion that America West is a struggling airline since it has posted smaller losses and some profits in recent times and compared to other carriers such as US Air and United, America West is in much better financial health and has a better cost structure.

Anyway, US Airways east coast routes with America West' west coast routes will be merged. Interesting to see what will be the result. Also there are rumors about the purchase of additional long haul planes (A350) from Airbus, I wonder if there will finally be direct flights to Asia from PHL.

cc · #2 (**permalink**) 05-20-2005, 10:03 AM

Quote:

Originally Posted by regman

Anyway, US Airways east coast routes with America West' west coast routes will be merged. Interesting to see what will be the result. Also there are rumors about the purchase of additional long haul planes (A350) from Airbus, I wonder if there will finally be direct flights to Asia from PHL.

Probably not anytime in the near future. The A350 won't come out until 2010 at least. US Airways will also have to fight for landing rights at Tokyo (the logical first Asian route).

It almost seems to me that US Airways releis on its partner Untied to do any flying west of the US while it concentrates its resources on destinations east and south of the US. They will probably initially use the A350 for European routes. One thing I'd like to see is a flight to India. That's doable with the A350 and will be eastward flying from PHL. As it stands, most people from the Mississippi eastward going to India have to go through NYC, Toronto, and/or Europe anyway so PHL would not be at a disadvantage. Of course there too US Airways will have to negotiate landing rights.

eldondre · #3 (**permalink**) 05-20-2005, 10:07 AM

Quote:

The companies said they expected to finance the transaction with about $1.5 billion in new capital, including chunks from regional airlines and European aircraft-maker Airbus S.A.S., and by selling newly issued stock. The airlines said they expected to save $600 million a year in operating costs once they are combined.The investment from Airbus, whose planes both airlines now fly, is part of an agreement for the new carrier to be the first customer for the Airbus A350 jet. The widebodied aircraft, designed to compete with the Boeing 7E7 and eventually replace the Airbus A330, would be delivered in 2008, they said.

http://www.philly.com/mld/inquirer/11690780.htm

wolverine0815 · #4 (**permalink**) 06-01-2005, 03:08 PM

I'm assuming if this merger goes through than the partnership with United will end.

cc · #5 (**permalink**) 06-01-2005, 05:15 PM

Quote:

Originally Posted by wolverine0815

I'm assuming if this merger goes through than the partnership with United will end.

Actually, as Ir ecall, they announced their intention to stay in the Star Alliance (with United). Also, Air Canada gave them a multi-million $ loan because theya re Star Alliance partners.