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US Airways, America West Complete Merger

September 27, 2005
Its official – East has met West. Bankrupt US Airways Group has formally merged with America West Airways and is operating as a single airline.

USAirways-America West • It's Official: East Met West • Merger Gets Loan Board Approval • Merger Announced • Merger on Course, Executives Insist • Merger May Be Near • US Airways, America West Far Along in Merger Talks --- • America West • US Airways

Even so, there remain some distinctions. The new combined company says consumers should continue to book directly with US Airways or America West as they did before the merger. The airlines’ Web sites, www.americawest.com and www.usairways.com, will also operate separately in the short term, as will the two airlines' reservations systems.

But one place where the two airlines are definitely joined is on Wall Street. The new US Airways began trading Tuesday on the New York Stock Exchange under the LCC symbol. Company officials and representatives from the airline’s labor groups joined US Airways Chairman, President and CEO Doug Parker at the opening bell ceremony at the New York Stock Exchange.

"Today we start a new chapter in aviation history," said Parker.

"The new US Airways combines our airlines’ proud heritage with our employees’ passionate commitment to provide our customers with friendly service and low fares. This is a great day for the employees of America West and US Airways as well as for the people in the hundreds of communities we serve."

Company officials say the benefits of the merger include:

• Single-branded product offering everyday, simple low fares and a network of choices for travel to more than 225 destinations worldwide, including Europe, the Caribbean, Mexico, Canada, and, in the near future, Hawaii

• Extensive Dividend Miles frequent flyer program with the ability to earn and redeem miles for travel in destinations throughout the globe.

• First class cabins on both domestic and international flights, with advance seating assignments and in-flight amenities that include audio and video entertainment selections.

• Hourly US Airways Shuttle service between Boston, New York and Washington.

While the merged airline will operate under the US Airways name, America West and US Airways will maintain separate operating certificates for approximately two to three years. Once FAA approvals have been granted, the two airlines’ operating certificates will be combined onto one.

America West Airlines initiated service in 1983 with three aircraft and 280 employees. America West grew rapidly, and by 1990, was the first airline formed since industry deregulation to achieve major-airline status. America West served 94 destinations across the U.S., Mexico, Canada and Costa Rica with more than 900 daily departures.

US Airways began operations in 1939 as All American Aviation. Its history includes mergers with North Carolina’s Piedmont Airlines, California’s PSA Airlines, and now Arizona’s America West Airlines. Prior to the merger, US Airways operated approximately 3,300 daily flights to 183 communities in the U.S., Europe, Canada, Mexico and the Caribbean.

It declared bankruptcy twice in recent years as stiff competition from low fare carriers created turbulence within the airline industry.

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