From usairways at vision.moundalexis.com Mon Aug 8 01:56:37 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 7 Aug 2005 21:56:37 -0400 (EDT) Subject: [US Airways] US Airways plan gives Airport Authority 'pause' Message-ID: <20050807215611.W2686-100000@vision.moundalexis.com> 2 Aug 2005; Pittsburgh Business Times US Airways plan gives Airport Authority 'pause' http://pittsburgh.bizjournals.com/pittsburgh/stories/2005/08/01/daily14.html?jst=b_ln_hl --- The group that operates Pittsburgh International Airport said Tuesday it is worried enough about US Airways' reorganization plan to ask for changes. A week before a federal bankruptcy judge is scheduled to hold a hearing on the carrier's Chapter 11 restructuring, the Allegheny County Airport Authority filed a limited objection to the disclosure statement which the airline (OTCBB:UAIRQ) proposes be sent to all creditors. US Airways is preparing to exit bankruptcy and merge with America West Airlines in late September or early October. In its filing with the U.S. Bankruptcy Court last month, US Airways said creditors with claims of $50,000 or less would receive 10 percent of their claim, in cash. Other creditors with unsecured claims would receive stock in the new company, which would be called US Airways and be based in Tempe, Ariz., America West's current headquarters. Airport Authority executive director Kent George said he supports the America West merger, but "there are certain aspects of the plan of reorganization that give us pause." George said while the objection was filed "in the hopes of improving the proposed plan for all creditors," it mainly concerns "airports who have large, long-term agreements with the company." "In light of what the airline did on its emergence from its last bankruptcy, we are very concerned about ensuring that parties to contracts are afforded notice and the opportunity to be heard," he said. The last time US Airways emerged from Chapter 11 bankruptcy in 2003, it rejected leases with the airport, catching the organization off-guard and costing it potentially millions in lease and landing fees. The airport authority wants two changes to the reorganization plan: notice of any rejection of contracts to be given well in advance of a hearing tentatively scheduled for Aug. 9, and a clear date of when those rejections will be effective. Creditors can begin voting on the bankruptcy reorganization plan after the bankruptcy court hearing on Aug. 9. The voting could last until Sept. 15. Despite deep cuts in service and its local payroll, US Airways remains the dominant carrier at Pittsburgh International, with more than 200 daily flights. From usairways at vision.moundalexis.com Mon Aug 8 02:00:46 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 7 Aug 2005 22:00:46 -0400 (EDT) Subject: [US Airways] Harassed pair handled it well, because 'Ida'... Message-ID: <20050807220014.J2686-100000@vision.moundalexis.com> 5 August 2005; Philadelpha Daily News Harassed pair handled it well, because 'Ida'... http://www.philly.com/mld/dailynews/news/local/12308119.htm --- By Elmer Smith THIS COULD have been the story of a local radio personality facing federal felony charges stemming from a brawl on a cross-country flight. Or it could have been the story of how two local men were wounded by federal air marshals who misread their fight as a distraction staged in a terrorist takeover. Or worse. The fact that it isn't those kind of stories should confirm that E. Steven Collins handled himself and a potentially life-threatening situation exactly as he should have early Monday on a USAirways red-eye flight from L.A. Collins, who is black, was sitting in first-class when a passenger sitting behind him allegedly started muttering racial slurs and kicking the seat of Collins' wife, Lisa. The man was arrested. But Collins and his wife hardly had their feet on the ground after a five-hour ordeal at 30,000 feet before he had to deal with the "Ida reaction." "Ida" is what I call that knee-jerk, macho response most men instinctively utter when they hear about a guy who restrains himself in the face of a physical challenge from another man. If the incident has racial overtones, as this one did, you get multiple "Idas." The sentence usually starts "if that was me, Ida..." or "If he had tried that with me, Ida..." My personal favorite is the one that opens with a kind of begrudging praise: "You're a better man than me, bro. 'Cause Ida..." Either way, "Ida" gets invoked with every re-telling of the confrontation until the guy who reacted with restraint can end up feeling like less than a man for failing to kill somebody. "I know, I know," Collins said with a resigned chuckle yesterday. "That's all I've heard from a lot of people. I even heard it from police at the airport. "It's ironic. We just had a horrible weekend, a lot of guys killing each other. You ask what it's about, is it drugs? Women? No, it's respect." Or disrespect if you believe Collins' account of an incident involving him and a Blue Bell man named Robert Baldwin who sat behind him on the flight. Collins said the plane hadn't even left the ground before Baldwin started muttering racial epithets and complaints about having to ride with "n------." He said the situation got worse as Baldwin began to kick Lisa Collins' seat and escalated to a point that Baldwin took off his shoes and put his feet up on Lisa Collins' headrest and later thrust his foot through the opening between the Collinses' seats. A flight attendant responded to Collins' repeated pleas for relief, but couldn't do anything to stop Baldwin, Collins said. Collins says USAirways failed to follow through on a promise to have security officials meet the flight and resolve the issue. City Councilwoman Blondell Reynolds Brown was on the flight but didn't see the incident. She called Police Commissioner Sylvester Johnson after she learned of it. Baldwin was arrested at the baggage-claim carousel. He faces a preliminary hearing on Sept. 19 on charges of ethnic intimidation, misdemeanor assault and a misdemeanor harassment charge. Baldwin has declined to speak with reporters for the Daily News or for other news outlets who have attempted to get his version of the events. A USAirways spokesman said the airline is conducting an investigation and "apologizes to that family and any other passenger who felt harassed in this incident." "I sat on that plane with all of that going on for hours," Collins told me. "I felt totally impotent to help my wife. I couldn't do a thing about it." Collins, who is 6-2 and weighs in at more than 230 pounds, may have been able to handle the smaller Baldwin in a physical confrontation. But then what? "In this post-9/11 world we live in," Collins said, "there's no telling what would have happened next if I had hit this guy. I might have been going to jail. "But Lisa was my rock. She just kept saying, 'I can handle this. You just handle what happens when we get off the plane.' "The flight attendant assured us that someone would meet the flight. But it didn't happen. I spoke to a USAirways representative when we landed. But he said he couldn't do anything. "If it wasn't for Blondell Reynolds Brown, he would have got away with it." Collins, who is national sales manager for Radio One Philadelphia, which operates three stations in Philadelphia, also hosts "E. Steven Live" on WPHI (103.9-FM). He said he has not decided whether to sue Baldwin or USAirways. "This is not about money," he said. "I earn a good living. I don't need to do that. "I'm not sure what I'll do. I haven't even hired an attorney to represent me in this yet. "This was shocking to us. We paid our way on. Nobody gave us a ticket. "I know I've never, ever experienced anything like this in my private life. This was a first for me." But he handled it like a seasoned veteran, despite what you might hear from "Ida." From usairways at vision.moundalexis.com Mon Aug 8 02:11:25 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 7 Aug 2005 22:11:25 -0400 (EDT) Subject: [US Airways] US Airways July traffic droops 1.7 percent Message-ID: <20050807221105.T2686-100000@vision.moundalexis.com> 3 August 2005; Business Week US Airways July traffic droops 1.7 percent http://www.businessweek.com/ap/financialnews/D8BOH4400.htm?campaign_id=apn_home_down&chan=db --- Bankrupt airline operator US Airways Group Inc. said Wednesday that July traffic fell 1.7 percent as available capacity decreased. The airline said traffic for the month fell to 3.85 billion revenue passenger miles from 3.91 billion a year earlier. A revenue passenger mile equals one paying passenger flown one mile. Capacity in July decreased 0.7 percent to 4.7 billion available seat miles from 4.73 billion a year ago. Load factor, or the percentage of seats filled with passengers, fell 0.8 points to 81.9 percent for the month. In July, the airline boarded 3.8 million passengers in July, down 1.5 percent from a year ago. For the six months of the year to date, US Airways traffic increased 2.2 percent to 24.22 billion revenue passenger miles, with capacity up 1.5 percent to 31.7 billion available seat miles. Load factor for the period rose 0.5 points to 76.4 percent from a year earlier. The airline boarded 25.2 million passengers in the past six months, up 1.5 percent from a year ago. From usairways at vision.moundalexis.com Mon Aug 8 02:11:43 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 7 Aug 2005 22:11:43 -0400 (EDT) Subject: [US Airways] US Airways carries fewer people in July Message-ID: <20050807221126.L2686-100000@vision.moundalexis.com> 4 August 2005; Charlotte Business Journal US Airways carries fewer people in July http://charlotte.bizjournals.com/charlotte/stories/2005/08/01/daily32.html --- US Airways Group Inc. says passenger traffic fell last month as capacity decreased. The Virginia-based airline says July traffic fell to 3.85 billion revenue passenger miles from 3.91 billion a year earlier. A revenue passenger mile equals one paying passenger flown one mile. Capacity decreased to 4.7 billion available seat miles from 4.73 billion a year ago. The percentage of seats filled with passengers fell to 81.9% from 82.7% in July of last year. US Airways (OTCBB:UAIRQ), which operates its largest hub at Charlotte/Douglas International Airport, says it expects to complete its $1.5 billion merger with Arizona-based America West Group Holdings Corp. in September or October. The combination of US Airways, which is reorganizing in U.S. Bankruptcy Court, and America West will form a carrier that will rival Dallas-based Southwest (NYSE:LUV) in size, with a wide choice of routes. The new company will take the US Airways name and be headed by Doug Parker, America West's chairman and chief executive. US Airways CEO Bruce Lakefield will be vice chairman following the merger. In a recent letter to employees issued by both companies, Lakefield and Parker named their picks for seven top executive positions. Six of the seven are America West (NYSE:AWA) workers. Once integrated, the new carrier plans on maintaining its hubs in Charlotte, Philadelphia and Phoenix, along with secondary hubs in Las Vegas and Pittsburgh. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. America West serves more than 90 destinations in the United States, Canada, Mexico and Costa Rica. A bankruptcy court hearing for US Airways' reorganization plan is scheduled for Aug. 9. From usairways at vision.moundalexis.com Mon Aug 8 02:12:03 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 7 Aug 2005 22:12:03 -0400 (EDT) Subject: [US Airways] US Airways passenger traffic slips; it will trim flights from Pittsburgh Message-ID: <20050807221144.X2686-100000@vision.moundalexis.com> 4 August 2005; Pittsburgh Tribune-Review US Airways passenger traffic slips; it will trim flights from Pittsburgh http://pittsburghlive.com/x/tribune-review/business/s_360118.html --- By Thomas Olson US Airways' passenger traffic in July slipped from year-ago levels, despite a dip in overall seat capacity, the airline said Wednesday. The airline flew about 3.8 million passengers last month, or 1.5 percent fewer than during July 2004. International traffic and express-carrier traffic increases were offset by a decline in mainline domestic traffic. Seat capacity, measured in available seat miles, declined 0.7 percent from the year earlier. US Airways' load factor, or percentage of seats filled, decreased to 81.9 percent last month from 82.7 percent in July 2004. Year-to-date, the load factor was 76.4 percent -- a 0.5-point improvement over the same period in 2004. The number of passengers boarded rose 1.5 percent to nearly 25.2 million. Meantime, the Allegheny County Airport Authority said the airline's daily flights from Pittsburgh International Airport will drop from about 225 currently to about 210 by September. As reported earlier, US Airways this week has dropped daily, Pittsburgh-to-Atlanta flights, effective Tuesday. And the airline is canceling nonstop service to Seattle and San Diego, beginning Aug. 21. Also on Aug. 21, US Airways Express will drop all three flights to Altoona in Blair County; all three to Knoxville, Tenn.; all three to Greensboro, N.C.; and one of three to Franklin in Venango County. One of four daily flights to Tampa will be suspended Aug. 21 until next February. Four daily flights to Wilkes-Barre will fall to three. At its peak in the summer of 2001, US Airways flew 512 daily flights from Pittsburgh International in Findlay. From usairways at vision.moundalexis.com Mon Aug 8 02:12:18 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 7 Aug 2005 22:12:18 -0400 (EDT) Subject: [US Airways] Allegheny County Airport Authority Objects to US Airways Reorganization Plan Message-ID: <20050807221204.V2686-100000@vision.moundalexis.com> 4 August 2005; Airport Business Allegheny County Airport Authority Objects to US Airways Reorganization Plan http://www.airportbusiness.com/article/article.jsp?id=2984&siteSection=3 --- Beaver County Times (PA) (KRT) via NewsEdge Corporation Aug. 4--FINDLAY TWP. -- The Allegheny County Airport Authority filed an objection Tuesday to US Airways' reorganization plan for emerging from bankruptcy. The authority is mainly concerned with getting adequate notice on the status of its contracts with the airline, especially with long-term arrangements, Executive Director Kent G. George said in a press release. The airport authority, which operates Pittsburgh International Airport, wants to have notice of any rejected contract "given well in advance" of the hearing for the proposed reorganization plan. The airport authority also wants to have a certain date set for allowing contracts to be rejected. In its disclosure statement, which was sent to all of US Airways' creditors for approval, the airline asked to be allowed to reject leases outside of bankruptcy, which would be a special exception. US Airways has leases on 10 gates at Pittsburgh International through 2018, the authority said. It also leases 40 other gates on a month-to-month basis. Though the authority supports the proposed merger of US Airways and America West as part of the reorganization, the press release said, "In light of what the airline did on its emergence from its last bankruptcy, we are very concerned about ensuring that parties to contracts are afforded notice and the opportunity to be heard," George said. "The objection filed today only seeks to achieve that goal." Twenty minutes before US Airways emerged from its first bankruptcy in March 2003, it rejected all of its Pittsburgh-area leases, including those with the airport, after airport officials said they'd been assured the leases were remaining intact. "We have a well-thought-out plan that has been well received by a vast number of stakeholders, and we will be addressing specific objections and concerns at the bankruptcy court hearing next Tuesday," said David Castelveter, US Airways spokesman. From usairways at vision.moundalexis.com Mon Aug 8 02:12:40 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 7 Aug 2005 22:12:40 -0400 (EDT) Subject: [US Airways] US Airways reorganization meets resistance from creditors Message-ID: <20050807221219.P2686-100000@vision.moundalexis.com> 4 August 2005; Beaver County Times / Allegheny Times US Airways reorganization meets resistance from creditors http://www.timesonline.com/site/news.cfm?newsid=14975818&BRD=2305&PAG=461&dept_id=478569&rfi=6 --- By Karen Ferrick-Roman, Times Staff The proposal that would lead US Airways out of bankruptcy has set off a flurry of bankruptcy court filings objecting to parts of the plan. On Tuesday, the Allegheny County Airport Authority filed an objection to US Airways' request of allowing it to reject leases after the creditors already had voted whether to approve the plan. More than half-a-dozen creditors, including the Association of Flight Attendants, the Communications Workers of America and Continental Airlines, likewise protested portions of the plan, which would culminate in the merger of US Airways and America West. These objections were filed Monday and Tuesday. Objections filed by the Goodrich Corp.; the Massachusetts Port Authority, which operates Boston Logan Airport where US Airways has 20 gates, a hanger, cargo space and parking and fuel licenses; the city and county of San Francisco, where US Airways' 30-year lease for gates, offices, ramps and cargo area expires on June 20, 2011; and the Bank of New York, a trustee for the Port Authority of New York and New Jersey, all took exception to the airline's proposal that it be allowed to break contracts even six months after it would be out of bankruptcy, a strategy typically reserved for companies that are in bankruptcy protection. Continental fell into this group because it said that on Nov. 24, 2004, US Airways defaulted on its lease payments at New York's LaGuardia Airport, where it subleases space from Continental, according to the document filed Tuesday. The filing did not say how much US Airways had owed. Generally, the creditors said they wouldn't know exactly what they are voting to approve and how much money they could expect from US Airways. The Massachusetts authority also raised the question of whether it would continue to be considered a secondary hub for the new US Airways, along with Pittsburgh, Las Vegas, LaGuardia and Reagan National in Washington, D.C. Documents had said that Charlotte, N.C.; Philadelphia and Phoenix would be the merged airline's primary hubs. Two sister unions, the Association of Flight Attendants and the Communications Workers of America, representing gate and reservation agents, also raised voices against parts of the plan. Both unions protested the airline's unilateral change to the profit-sharing plan, which they said had been negotiated in a contract. The unions pointed out that with most recent concessions reaching $130 million a year for the CWA and $116 million a year for the flight attendants, the profit-sharing plan had been seen as part of the union's give-and-take. The unions also said the plan essentially waived their right to grievances and left questions as to whether each of the unions would receive board seats. Hearings on the plan and the objections are expected to start Tuesday in bankruptcy court in Alexandria, Va. From usairways at vision.moundalexis.com Mon Aug 8 02:13:38 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 7 Aug 2005 22:13:38 -0400 (EDT) Subject: [US Airways] US Airways hedging its bets Message-ID: <20050807221241.A2686-100000@vision.moundalexis.com> 7 August 2005; Beaver County Times / Allegheny Times US Airways hedging its bets http://www.timesonline.com/site/news.cfm?newsid=14993013&BRD=2305&PAG=461&dept_id=478569&rfi=6 --- By Karen Ferrick-Roman, Times Staff When troubled companies run out of bank and commercial loans and other traditional options, they are likely to turn to hedge funds, a somewhat mysterious, less-regulated version of mutual funds. That's where the proposed US Airways bankruptcy exit plan and merger get at least $365 million of the $1.5 billion the company expects to raise as a dowry for its fall wedding with America West. "There's nothing unique about this situation," said Betsy Snyder, an airline analyst with the Standard & Poor's market research service. "This is very common: private equity hedge funds." Some investors are new to the airline industry, and some are old hands in airline investments, she said. Basically, hedge funds "invest in anything that meets their potential for investment return targets," said Kurt Forsgren, director of corporate and government divisions at Standard & Poor's. These private investment pools can include stocks, bonds, currencies and commodities, according to the Wall Street Journal. Traditionally, hedge funds represent institutions and wealthy individuals who are "savvy investors who have done their homework," Forsgren said, making the most of opportunities for higher returns in risky investments. "These hedge funds obviously are a tremendous source of capital for people like the airlines, who have exhausted all the other commercially available sources of lending. And there is always somebody out there who will loan you money if the payback meets their investment guidelines." As for the terms and rates of repayment, Forsgren said, "I don't know if anyone knows." But this type of investment generally comes with a price, which might mean a hefty interest rate or loss of control. "The more desperate you are, the more you need the money, the more strict the terms are, the higher the interest rate is, the more of the equity you kind of have to confer to them," Forsgren said. To exit bankruptcy and complete the America West merger, US Airways had to come up with at least $350 million in investment from outside sources. The airline has attracted well over that amount. Three of the equity investors will have seats on the board, along with six directors to be appointed by America West and four to be named by US Airways, according to a bankruptcy court filing. The investors at a glance: Wellington Management Partners. The single largest outside investment in US Airways comes from Wellington. The company is plopping down $150 million for a 14 percent share of ownership that would drop to 11 percent if all stock is issued, according to a bankruptcy court filing. The investment is being made on behalf of an unnamed group. Officials at Wellington, which is buying its new US Airways stock at $16.50 a share, did not return phone calls. Wellington is widely known for its mutual fund investments, Snyder said. The Wellington Management Web site said the company is based in Boston, with offices in Atlanta, Chicago, San Francisco and Radnor, Pa., plus affiliate offices in London, Singapore, Sydney, Tokyo and Hong Kong. Its most recent SEC filing shows Wellington Management Co. has invested in a range of holdings that includes Abercrombie & Fitch, Wal-Mart, MGM Mirage, McDonald's, Home Depot, Halliburton, Michael Baker Corp, Wal-Mart, Panera Bread Co. and Pfizer, as well as financial and insurance companies. Wellington is no stranger to airline investments. SEC filings show it is the largest investor in Independence Air, with 5.5 million shares, more than 12 percent of the company. It also holds stakes of more than 5 percent in American, Continental and Southwest airlines, plus European no-frills, low-cost airline Ryanair Holdings. Wellington would not have a seat on the new US Airways board of directors, according to US Airways. Neither did bankruptcy filings list a break-up fee for Wellington, though either airline would receive $15 million if the deal falls through. PAR Investment Partners. PAR is putting up $100 million to reap 10 percent of ownership, which drops to 8 percent if all stock is issued. The investment company headquartered in Boston is buying 6.6 million shares of new US Airways stock at $15 per share. Massachusetts records show PAR Investment Partners LP as being organized in Delaware and registering in Massachusetts in 1990. It is listed as a foreign limited partnership. The names of owners and principals are not on file, and the company did not return a call for information. PAR has a reputation for specializing in airline investments, Snyder said. SEC filings showed PAR Investment Partners is the second-largest investor in Independence Air, behind Wellington, with 9.98 percent of ownership and 4.5 million shares. PAR Group LP also holds 5.8 percent of the common stock shares of America West, 1.9 million shares, plus about 10 percent of American Airlines' stock. PAR would receive $3 million if the merger is not completed by the end of the year, according to a bankruptcy court filing. Peninsula Investment Partners. Peninsula, based in Charlottesville, Va., will invest $50 million for 5 percent ownership (3.3 million shares) that would drop to 4 percent if all shares are issued. The Virginia State Corporation Commission said Peninsula, a limited partnership, originated in Delaware and was registered in Virginia in 2000. The state does not list principals or owners, and the company did not return a phone call. SEC filings show Peninsula as being invested in diverse holdings such as Wilson's Leather, Pegasus Communications, and a radio telecommunications firm, a mining company and commercial banks. If the US Airways-America West merger is not complete by Dec. 31, Peninsula would get $1.5 million in break-up fees, according to a bankruptcy court filing. The Tudor Group. A huge hedge fund in Greenwich, Conn., Tudor manages about $11 billion and has committed $65 million to US Airways' pot, according to a US Airways press release. In return, Tudor will get about 3.9 million shares of stock, bought at $16.50 a share. Filomena DiSisto, Tudor spokeswoman, said the group does not comment on its holdings. An SEC filing from March showed a multitude of investments for the company and its voluminous affiliates, but not in airlines. Airlines investing as well Another funding stream for US Airways has come from other airlines: n $75 million and an 8 percent interest from ACE Aviation Holdings, the Montreal-based parent of Air Canada that hopes to do maintenance for the US Airways fleet. n $125 million from Air Wisconsin Airlines, via Eastshore Holdings, which could put its 87 regional jets into the air for US Airways Express. n $110 million from Republic Airways Holdings, which is selling stock to support buying the 25 jets of US Airways' MidAtlantic Airways, plus three on order, as well as landing times at New York LaGuardia and Reagan National in Washington, D.C. Republic also will assume the existing $439.4 million debt for the planes, freeing US Airways from that burden, according to a bankruptcy court filing. Airlines investing in airlines, while perhaps not routine, isn't surprising, Forsgren said - especially considering Air Wisconsin's situation. "They're making this investment, in part, to continue to ensure they have passengers that move onto their airline," he said. But one atypical situation in the investments is the industry turmoil at this time. While the business has had ups and down, many airlines are fighting record-high fuel prices and fares so consumer-friendly that they are starved for profits, even though the planes are flying more full. After the Sept. 11, 2001, terrorist attacks dented air travel, the federal government stepped in with funding to help in the recovery. Both America West and US Airways have loans backed by the government, amounting to more than $1 billion. One other river of money has sprung from suppliers to the airlines. Airbus is offering a $250 million loan in return for the promise of the merged airline launching a new plane. General Electric Corp. and its affiliates have reduced their risk by having US Airways agree to return more than 50 planes. Still, the airplane and engine supplier appears to be counting on continued business from US Airways. Instead of demanding cash from US Airways, it agreed to accept a $125 million note to be converted to stock, betting that US Airways will stay in business. GE has emptied some of its wallet on other airline bailouts as well. The Wall Street Journal has reported the company has spread more than $7 billion nationwide since 2001. "With aircraft manufacturers, it is in their interest to ensure that the entities they sell to are solvent and operational," Forsgren said. If the airlines have loans they can't pay, the suppliers are better off renegotiating the terms than writing off the entire amount. "They probably view it as they don't have a lot of alternatives," Forsgren said. "Again, the airlines have lost all the other sources of traditional lending; this (hedge funds) is really the only one that's left," Forsgren said. "I think you're likely to see more nontraditional investors in the airlines in the near term." From usairways at vision.moundalexis.com Mon Aug 8 22:32:23 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 8 Aug 2005 18:32:23 -0400 (EDT) Subject: [US Airways] Southwest gains, US Airways falls Message-ID: <20050808183054.P2686-100000@vision.moundalexis.com> 8 August 2005; Pittsburgh Business Times Southwest gains, US Airways falls http://pittsburgh.bizjournals.com/pittsburgh/stories/2005/08/08/daily5.html?jst=b_ln_hl --- Every airline, with the exception of US Airways Group Inc., reported passenger gains at Pittsburgh International Airport in June, and newcomer Southwest Airlines had the third-most riders, airport officials said Monday. Overall, passenger traffic fell 20.8 percent in June compared to the same month last year, the Allegheny County Airport Authority said. But all airlines other than US Airways totaled 416,238 passengers in June 2005, compared to 280,726 in June 2004, an increase of 48.3 percent. "When that many airlines report increased traffic figures, it is good news," Airport Authority executive director Kent George said. "People are taking advantage of the choices and lower fares available to them." US Airways (OTCBB:UAIRQ), struggling to emerge from bankruptcy and seeking to merge with America West, reported a 40-percent decrease in June 2005 compared to June 2004 (605,881 passengers this June, compared to 1,009,413 in 2004). US Airways last year reduced Pittsburgh from a hub to a "focus city" and drastically reduced flights. A total of 1,025,191 people traveled through the airport in June 2005, which means US Airways accounted for 59.2 percent of the passengers and all other airlines totaled 40.7 percent. Southwest Airlines, which entered the market in May, was the third busiest airline at the airport for the month. Southwest's passenger total was 67,104 in June, almost 10,000 more than May. Only US Airways and Delta (71,526 passengers) had more riders. Overall, Midwest Connect reported the largest jump in passengers on a percentage basis as it reported a total of 4,816 passengers in June 2005 - a 143.1 percent increase over the 1,981 passengers it reported in June 2004. Other airlines reporting increases include: America West, 67.1 percent (14,128 passengers in June 2005/8,457 in June 2004), United, 65.5 percent (66,892/40,417), USA3000, 34.2 percent (21,688/16,166), Northwest, 29 percent (48,605/37,668), Continental, 25 percent (27,717/22,175), Air Canada, 23.3 percent (3,272/2,653), AirTran, 18.8 percent (32,522/27,376) and American, 6.2 percent (39,093/36,819). From usairways at vision.moundalexis.com Tue Aug 9 02:46:38 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 8 Aug 2005 22:46:38 -0400 (EDT) Subject: [US Airways] PIA Sees Higher Numbers, Same Untrue For US Airways Message-ID: <20050808224554.D2686-100000@vision.moundalexis.com> 8 August 2005; The Pittsburgh Channel PIA Sees Higher Numbers, Same Untrue For US Airways http://www.thepittsburghchannel.com/news/4823693/detail.html --- Pittsburgh -- The June Airlines Traffic Report issued by the Allegheny County Airport Authority shows that traffic at Pittsburgh International Airport increased during the month of June. All airlines, except US Airways, reported an increase of passengers. Furthermore, for the first time since October 2004, passenger traffic surpassed the 1 million-passenger mark. Airport Authority Executive Director Kent G. George said, "When that many airlines report increased traffic figures, it is good news. People are taking advantage of the choices and lower fares available to them." However, the numbers also evidence a year-to-date decrease in passengers of around 25 percent from June of last year. From usairways at vision.moundalexis.com Tue Aug 9 12:54:26 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 9 Aug 2005 08:54:26 -0400 (EDT) Subject: [US Airways] US Airways breaks with BofA Message-ID: <20050809085216.U2686-100000@vision.moundalexis.com> 09 August 2005; The Charlotte Observer US Airways breaks with BofA http://www.charlotte.com/mld/charlotte/business/12336532.htm --- Juniper Bank pledges $455 million to take over airline's credit card TONY MECIA AND RICK ROTHACKER Staff Writers Holders of US Airways Dividend Miles Visa cards will eventually stop sending payments to Bank of America Corp., which is getting out of the business of sponsoring the airline's frequent flier cards. Taking the place of Charlotte-based Bank of America will be Juniper Bank, a subsidiary of British-based Barclays PLC, which agreed Monday to pour $455 million into the merger between US Airways and America West Airlines. In exchange, Juniper will have the exclusive right to market the US Airways credit card beginning in 2008, after a two-year transition period in which both banks can offer US Airways cards, according to regulatory documents filed Monday. The end of Bank of America's participation in US Airways credit cards was somewhat unexpected, given that the bank runs card programs for both US Airways and America West. In addition, the bank and US Airways have continued to aggressively market the cards in recent months. Even Monday, the airline used its daily employee message to heap praise -- and $50 Bank of America gift cards -- on two flight attendants who distributed credit-card applications on flights. Bank of America spokeswoman Betty Riess declined to comment on why the company was ending its partnership with the airlines. Juniper spokeswoman Donna Sokolsky said the agreement was a "very positive step" for the US Airways-America West merger. Operating under bankruptcy protection for 11 months, US Airways is in the final stages of completing its link-up with America West. Charlotte is US Airways' largest hub and home to about 5,300 of the airline's 24,000 workers. The deal with Juniper adds to the cash cushion the airline will have after the merger. The $455 million Juniper will pay the airline when the merger closes -- $130 million in a one-time bonus, plus $325 million to buy miles -- is significantly more than the $300 million America West and US Airways forecast in May they could raise from a credit-card provider. Typically, banks pay airlines between 1 cent and 2 cents per frequent flier mile, then award one mile to customers for each $1 charged. Customers can cash in miles for free trips, upgrades, magazines and other rewards. Such credit cards typically carry bigger annual fees and higher interest rates than other cards. US Airways has nearly 27 million Dividend Miles accounts, according to InsideFlyer.com, although the airline and the bank do not disclose the number of cardholders. While lucrative for the airline, deals also mean serious money for credit-card companies, which gain access to premium credit-card customers. "The people who sign up for these credit cards tend to be higher net-worth individuals, people with generally good credit, who don't default on their debts," said Tim Winship, publisher of FrequentFlier.com, which tracks frequent flier programs. "The banks are going to make a lot of money on these people." Banks can also market other services to those customers. Earlier this year, Bank of America began promoting a new credit card that lets consumers and small businesses earn points toward rewards such as cash rebates, merchandise and airline tickets. Unlike the company's US Airways credit card, airline tickets can be redeemed on any U.S.-based carrier. Wilmington, Del.-based Juniper is the 18th-biggest U.S. credit card issuer, with $1.5 billion in outstanding balances in 2004, according to industry newsletter The Nilson Report. Barclays in December acquired Juniper in an effort to expand its international credit card business. Juniper focuses on card partnerships with organizations such as Frontier Airlines, AirTran Airways and Orbitz. Bank of America is set to become the nation's biggest credit card issuer with its pending acquisition of credit card giant MBNA Corp. 2-year Transition - Juniper Bank will start marketing US Airways card in 2006; Bank of America will stop offering card by 2008. - Cardholders are unlikely to have to reapply for the cards, said an America West spokesman . The transition should be "very easy and seamless," he said. From usairways at vision.moundalexis.com Tue Aug 9 12:55:46 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 9 Aug 2005 08:55:46 -0400 (EDT) Subject: [US Airways] US Airways seeks severance approval Message-ID: <20050809085427.O2686-100000@vision.moundalexis.com> 09 August 2005; Charlotte Observer US Airways seeks severance approval http://www.charlotte.com/mld/charlotte/business/12336537.htm --- US Airways is again asking a bankruptcy judge to approve severance deals for its top executives, including a $1.7 million payout to Chief Executive Bruce Lakefield. In June, Judge Stephen Mitchell approved retention incentives for low- and mid-level managers but postponed a decision on severance packages for executives, saying he wanted to wait for the rest of the bankruptcy case to play out. On Sunday, the airline filed papers with the court again seeking the incentives, which are designed to keep top leaders at their posts until the merger with America West is complete. Labor unions have objected, saying the retention plan is unnecessary. A ruling is expected in mid- to late September. The plan offers Lakefield and 23 other executives one or two times their annual salaries and bonuses, depending on position, if their jobs are eliminated. It is expected to cost $12 million, according to court papers. -- TONY MECIA Back to court US Airways heads back to court today in Alexandria, Va., seeking a judge's permission for creditors to begin voting on its reorganization plan. Creditor approval is one of the final steps in leaving bankruptcy protection and merging with America West. Under the plan, unsecured creditors would receive between 3.1 percent and 17.4 percent of what they're owed. Under US Airways' proposed timeline, balloting would conclude Sept. 12, and a hearing to approve the plan would start Sept. 15. The airlines have said they hope to close the deal by early October. -- TONY MECIA No skybox needed With US Airways planning to move its headquarters to Tempe, Ariz., from Arlington, Va., it figures it will have no need for its skybox at the MCI Center in Washington.In a Monday court filing, the airline said it plans to reject its contract with the arena, which is home to the NBA's Washington Wizards, the NHL's Washington Capitals and the NCAA's Georgetown Hoyas. "The costs associated with these activities far outweigh the revenue generation and goodwill associated therewith," the airline said in the court filing. The projected savings were not disclosed, but a suite at the MCI Center typically costs $100,000 to $200,000 a year, plus the cost of tickets. America West has a suite at the home of the Phoenix Suns: America West Arena. -- TONY MECIA New stock symbol The new US Airways plans to have a new stock ticker symbol on the New York Stock Exchange: LCC. The letters are industry lingo for "low-cost carrier." -- TONY MECIA From usairways at vision.moundalexis.com Tue Aug 9 22:58:19 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 9 Aug 2005 18:58:19 -0400 (EDT) Subject: [US Airways] Judge allows creditor vote on US Airways plan Message-ID: <20050809185231.T2686-100000@vision.moundalexis.com> 9 August 2005; Reuters Judge allows creditor vote on US Airways plan http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-08-09T160425Z_01_WAT003620_RTRIDST_0_AIRWAYS-USAIR-URGENT.XML --- ALEXANDRIA, Va., Aug 9 (Reuters) - A federal judge on Tuesday cleared the way for creditors of bankrupt US Airways (UAIRQ.OB) to formally vote on a plan by a group of investors to combine the struggling carrier with America West Airlines (AWA.N). Judge Stephen Mitchell of the U.S. Bankruptcy Court for the Eastern District of Virginia also set a Sept. 15 date for a hearing to confirm the merger that would create the nation's fifth-biggest airline. America West shareholders are due to meet Sept. 13 to consider the merger. From usairways at vision.moundalexis.com Tue Aug 9 22:59:45 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 9 Aug 2005 18:59:45 -0400 (EDT) Subject: [US Airways] US Airways, BofA part ways on credit-card deal Message-ID: <20050809185819.C2686-100000@vision.moundalexis.com> 9 August 2005; Charlotte Business Journal US Airways, BofA part ways on credit-card deal http://charlotte.bizjournals.com/charlotte/stories/2005/08/08/daily10.html?jst=b_ln_hl --- Juniper Bank will invest $455 million into the merger of US Airways Group Inc. and America West Group Holdings Corp., a deal that will give the bank the sole right to market the US Airways credit card in 2008 and beyond. According to a filing with the Securities and Exchange Commission, Charlotte-based Bank of America Corp. (NYSE:BAC) currently administers US Airways' credit-card program. Both banks will be able to market the card until 2008, the filing says. Under the agreement, Juniper will market an airline mileage award credit-card program to the general public to participate the merged airline's dividend-miles program through a co-branded credit card. Juniper will pay the merged airline fees for each mile awarded to each credit-card account administered by the bank. Juniper, based in Delaware, is a division of Barclays plc. America West has also restructured its credit-card processing agreement with JP Morgan Chase Bank to include the merged airline, the filing says. BofA currently administers US Airway's credit-card processing. A BofA spokesman was unavailable for comment. The agreements will take effect when the merger closes. US Airways (OTCBB:UAIRQ), which operates its largest hub at Charlotte/Douglas International Airport, says it expects to complete its $1.5 billion merger with Arizona-based America West in September or October. The combination of US Airways, which is reorganizing in U.S. Bankruptcy Court, and America West will form a carrier that will rival Dallas-based Southwest (NYSE:LUV) in size, with a wide choice of routes. The new company will take the US Airways name and be headed by Doug Parker, America West's chairman and chief executive. US Airways CEO Bruce Lakefield will be vice chairman following the merger. In a recent letter to employees issued by both companies, Lakefield and Parker named their picks for seven top executive positions. Six of the seven are America West (NYSE:AWA) executives. Once integrated, the new carrier plans on maintaining its hubs in Charlotte, Philadelphia and Phoenix, along with secondary hubs in Las Vegas and Pittsburgh. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. America West serves more than 90 destinations in the United States, Canada, Mexico and Costa Rica. Virginia-based US Airways operates 34 gates at Charlotte/Douglas International Airport. From usairways at vision.moundalexis.com Tue Aug 9 23:01:56 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 9 Aug 2005 19:01:56 -0400 (EDT) Subject: [US Airways] US Airways Closer to Leaving Bankruptcy Message-ID: <20050809185946.A2686-100000@vision.moundalexis.com> 9 August 2005; CBS News US Airways Closer to Leaving Bankruptcy http://www.cbsnews.com/stories/2005/08/09/ap/business/mainD8BSDVEG0.shtml --- (AP) A judge on Tuesday allowed US Airways to send its reorganization plan to creditors for a vote, moving the airline one step closer to emerging from bankruptcy. U.S. Bankruptcy Judge Stephen Mitchell scheduled a hearing for Sept. 15 to consider final court approval of the plan. The hearing is scheduled for two days after America West Airlines shareholders are scheduled to approve the company's merger with US Airways. The merger is the centerpiece of US Airways' reorganization plan. Mitchell approved the airline's disclosure statement, which will accompany the creditors' ballot on the proposed reorganization. The reorganization plan does not resolve several objections from the airline's unions. Labor groups are upset that US Airways wants to scale back a proposed profit-sharing plan with workers to accommodate new investors in the merged airline. Mitchell urged the airline and unions to resolve their dispute before the Sept. 15 hearing. US Airways Chief Executive Bruce Lakefield said Tuesday's hearing was a "another good step" in the airline's path to reorganization. He said US Airways hopes to formally emerge from bankruptcy in late September or early October. From usairways at vision.moundalexis.com Tue Aug 9 23:03:16 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 9 Aug 2005 19:03:16 -0400 (EDT) Subject: [US Airways] US Airways Closer to Leaving Bankruptcy Message-ID: <20050809190157.F2686-100000@vision.moundalexis.com> 9 August 2005; The Washington Post US Airways Closer to Leaving Bankruptcy http://www.washingtonpost.com/wp-dyn/content/article/2005/08/09/AR2005080900656.html --- By MATTHEW BARAKAT The Associated Press ALEXANDRIA, Va. -- A judge on Tuesday allowed bankrupt US Airways Group Inc. to send its reorganization plan to creditors for a vote, moving the airline one step closer to emerging from Chapter 11 protection. U.S. Bankruptcy Judge Stephen Mitchell scheduled a hearing for Sept. 15 to consider final court approval of the plan, which calls for a merger between US Airways and America West Airlines, the nation's seventh and eighth-largest airlines, respectively. The hearing is two days after America West shareholders are scheduled to vote on the proposed merger. The airlines have already received a variety of regulatory approvals; if Mitchell approves the reorganization plan at the September hearing, US Airways would be free to emerge from bankruptcy in late September or early October and close on the merger with America West. Mitchell on Tuesday approved the airline's disclosure statement, which will be sent to creditors along with their ballot as they consider whether to vote for the reorganization. The hearing left unresolved several objections from the airline's unions. Labor groups are upset that US Airways wants to scale back a proposed profit-sharing plan for workers. US Airways' unions agreed to sharp cuts in pay and benefits as part of the company's restructuring; one of the few items they received in return was a relatively generous profit-sharing plan. US Airways contends that the profit-sharing plan must be scaled back to accommodate new investors who are putting up $565 million to finance the merger and says the profit-sharing plan was always subject to revision depending on the level of outside investment it could attract. Unions are also upset that the plan of reorganization eliminates their representation on the board of directors. "We have some very serious concerns about the way our union has been treated, and how some of our issues have almost been disregarded by management," said Jack Stephan, spokesman for the US Airways unit of the Air Line Pilots Association. Mitchell urged the airline and unions to resolve their dispute before the Sept. 15 hearing. If the issues remain unresolved, Mitchell would have to rule on whether the unions' objections are valid, which could complicate US Airways' emergence. US Airways Chief Executive Bruce Lakefield said Tuesday's hearing was "another good step" in the airline's path to reorganization. Under the plan of reorganization, unsecured creditors would receive 10 cents on the dollar for claims smaller than $50,000 and stock in the reorganized company for larger claims. The airline estimates that the stock would be worth anywhere from 3 cents to 17 cents on the dollar of a given creditors' claims. The airline has no way of knowing what stock in the new company will be worth when it begins to trade publicly, but it has estimated a range of $18 to $33 a share. Perhaps the best measure of the stock's value is by looking at shares of America West, which will be converted into US Airways shares following the merger. America West traded at $8.04 a share Tuesday on the New York Stock Exchange. At that price, converted shares in the new US Airways would be worth $19.49. From usairways at vision.moundalexis.com Tue Aug 9 23:04:28 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 9 Aug 2005 19:04:28 -0400 (EDT) Subject: [US Airways] Airline Issues At Ford International Message-ID: <20050809190320.C2686-100000@vision.moundalexis.com> 9 August 2005; WZZM13 News Airline Issues At Ford International http://www.wzzm13.com/news/news_article.aspx?storyid=42155 --- By: Phil Dawson Not only are mechanics threatening a strike at Northwest Airlines, US Airways is ending service at Gerald R. Ford International Airport. It means potential problems for travelers. "I think it's sad," says US Airways passenger Judy Moore. "It's a great airline. These are wonderful people". US Airways is trying to emerge from bankruptcy and merge with America West. Northwest Airlines, trying to control expenses, is in a contract stalemate with mechanics and facing a possible strike next month. Nearly half the flights in and out of Grand Rapids are Northwest. A strike could send thousands of travelers to other carriers for transportation. "When we have had service interruptions on carriers in the past other carriers have stepped up to accommodate those displaced passengers," says airport spokesman Bruce Schedlbauer. "There are a lot of carriers that go to different areas," says Northwest passenger William Dorsey. "You would easily be able to jump on someone else like United or US Airways". But in October US Airways is leaving Grand Rapids. The airline is grounding their four daily round trips between Ford International and their hub in Philadelphia. "We were informed by the carrier that it was primarily due to insufficient revenue out of Grand Rapids," says airport spokesman Bruce Schedlbauer. "It's a shame," says US Airways passenger Robert Medford. "It's the most convenient one to fly here. I fly US Airways all of the time". US Airways flies 80 thousand passengers to and from Grand Rapids every year. That's about 4% of the total number of airport travelers. It's possible another airline will replace US Airways. "Whether or not the departure of US Airways will make a difference in some other airline's decision to enhance or institute new service remains to be seen," says Schedlbauer. "I don't know if they will be as good as US Airways," says passenger Bob Medford. "I'm sold on US Air". US Airways will end operations in Grand Rapids On October 12. The earliest mechanics could strike Northwest is August 19 at the end of a cooling off period. From usairways at vision.moundalexis.com Wed Aug 10 12:09:24 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 10 Aug 2005 08:09:24 -0400 (EDT) Subject: [US Airways] The 'new' US Airways hopes its ticker symbol will be a sign of things to come Message-ID: <20050810080744.G2686-100000@vision.moundalexis.com> 10 August 2005; Post-Gazette The 'new' US Airways hopes its ticker symbol will be a sign of things to come http://www.post-gazette.com/pg/05222/551199.stm --- Ticker: A sign of things to come? Wednesday, August 10, 2005 By Dan Fitzpatrick, Pittsburgh Post-Gazette The new US Airways, if it merges successfully with America West Airlines this fall, will scroll across the bottom of every financial TV-news program and Times Square ticker as LCC. LCC? America West admits the odd stock symbol raises an obvious question: "What the heck???" As a New York Stock Exchange ticker designation, L-C-C doesn't sound all that sexy (unlike Southwest Airlines' LUV), nor does it have any visible connection to US Airways (unlike the old UAIR symbol) or an obvious meaning for the average flier. The symbol, as it turns out, stands for "low-cost carrier" -- an industry term for airlines that are able to keep expenses down and operate more efficiently than the larger, old-line carriers. So, LCC is perhaps an appropriate aspiration for the executives in charge of the merged US Airways-America West, who hope to keep costs and ticket prices low. But in a country where stock ticker symbols are used as marketing gimmicks, does LCC work? Does it set US Airways apart? Or is it too obscure? "Hmmmm," said longtime stock listings adviser Patrick Healy, based in Chevy Chase, Md. "I want to think about that one. It doesn't strike me right away as something that comes immediately to mind." But, "with the right campaign around it, it may be successful." There is a long history of companies using unusual ticker symbols to set themselves apart. The practice began in 1844 as a way to send stock prices over the telegraph system easily and efficiently. To save room, stocks with the highest volume got one-letter names -- many companies continue that practice today, such as the F used by Ford Motor Co or the C used by Citigroup, which grabbed the letter after Chrysler dropped it as part of a 1998 merger with German automaker Daimler-Benz. Symbols of three letters or less trade on the New York Stock Exchange; four letters indicate a Nasdaq listing. Most of the one-letter codes are taken (Gilette has G, Kellogg has K, AT&T has T). H, I and M, however, still remain available. The use of ticker symbols spans from the pragmatic to the bizarre. ML Macadamia Orchards L.P., which grows macadamia nuts, went with NUT. Anheuser-Busch, maker of Budweiser beer, went with BUD. The Cheesecake Factory Inc? CAKE. The Boston Beer Co. Inc., maker of Sam Adams beer, chose SAM. Cedar Fair, the Sandusky, Ohio, amusement park operator whose holdings include Cedar Point, uses FUN. "Fun is what we are about, which is why it was picked," said a company spokesman. Southwest went with LUV for several reasons. One, the airline is based at Dallas' Love Field. Secondly, and perhaps more importantly, LUV is a many-layered motif at a company that used a string of double entendres and racy advertising to sell seats early in its history. But there is risk in being too edgy, Healy said. Computer maker Gateway Inc. considered the ticker MOO when going public, a reference to the company's cow-themed advertising campaign. But Healy advised the company against it and "common sense prevailed," he said. The company went instead with the more prosaic GTW. Healy thought it was the better choice, melding the "G" in Gateway with the initials of Gateway's founder, Ted Waitt. But a symbol that resonates with people inside the company may not always work, either. Seattle retailer Nordstrom, for example, chose JWN, the initials of the founder -- a fact probably lost on the average stock picker or shopper. Denver beer maker Coors went with RKY, a reference to the company's origins near the Rocky Mountains. "That's a little bit of a stretch, don't you think?" Healy said. In going with LCC, America West and US Airways rejected more conservative options such as USR, FLY and AIR. In a message to employees this week, America West acknowledged the many questions people may have about the choice. "Some may think we should have gone the standard (boring) route of choosing a less edgy ticker symbol while others may think LCC is just goofy," it said. "But all will agree selecting something out of the ordinary is a bold statement of how the new US Airways will operate." The airline admitted that LCC may not "mean squat" to people unfamiliar with the airline business. But, "if we do our jobs right, it will have a lot of meaning inside and outside of the industry." Choosing LCC "says we are serious about making the new US Airways successful. It serves to remind us that in order to achieve that success, operating as a low cost carrier must be our blueprint." From usairways at vision.moundalexis.com Wed Aug 10 12:11:26 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 10 Aug 2005 08:11:26 -0400 (EDT) Subject: [US Airways] US Airways' revised plan OK'd for vote Message-ID: <20050810080925.C2686-100000@vision.moundalexis.com> 10 August 2005 ; Chicago Tribute US Airways' revised plan OK'd for vote http://www.chicagotribune.com/business/chi-0508100179aug10,1,3606463.story?coll=chi-business-hed&ctrack=1&cset=true --- ALEXANDRIA, Va. -- US Airways Group Inc., which plans to emerge from bankruptcy protection this year by combining with America West Holdings Corp., can send its reorganization plan to creditors for a vote, a judge ruled Tuesday. U.S. Bankruptcy Judge Stephen Mitchell scheduled a hearing for final approval of the plan Sept. 15, after allowing lawyers for debtors and creditors to hash out some last-minute changes to a disclosure statement that will be mailed Tuesday. "We resolved all the issues" concerning the disclosure statement, said Douglas Foley, a lawyer who represented US Airways at the hearing. Objections to the reorganization plan may be filed until Sept. 12. The hearing left unresolved several objections from the airline's unions. Labor groups are upset that US Airways wants to scale back a proposed profit-sharing plan for workers and that the plan of reorganization eliminates their representation on the board of directors.Mitchell urged the airline and unions to resolve their dispute before the Sept. 15 hearing. US Airways, burdened by high labor and fuel costs and hurt by East Coast price competition, filed its second bankruptcy petition in two years on Sept. 12. The airline has secured more than $1.1 billion a year in job, wage and benefit cuts from union workers since then. The hearing on final approval will take place two days after shareholders in Tempe, Ariz.-based America West vote on whether to approve the merger. US Airways expects to complete the merger by October, connecting its East Coast operations to America West's mainly Western network.. From usairways at vision.moundalexis.com Thu Aug 11 03:00:01 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 10 Aug 2005 23:00:01 -0400 (EDT) Subject: [US Airways] US Airways plan clears another hurdle Message-ID: <20050810225821.J2686-100000@vision.moundalexis.com> 10 August 2005 ; The Business Journal of Milwaukee US Airways plan clears another hurdle http://milwaukee.bizjournals.com/milwaukee/stories/2005/08/08/daily19.html?jst=b_ln_hl --- Jeff Clabaugh Washington Business Journal A bankruptcy court judge has given US Airways the green light to present its reorganization plan to creditors for approval, one of the final steps in the airline's planned exit from bankruptcy protection and its merger with America West Airlines. Judge Stephen Mitchell scheduled a hearing on the reorganization plan for Sept. 15. The airlines have received commitments on $565 million from investors, including $125 million from an affiliate of Appleton-based Air Wisconsin Airlines Corp., once their merger is complete. US Airways (NASDAQ: UAIRQ) expects to close the merger by September or October. The plan, which outlines how thousands of creditors will be paid, includes cash payments equal to 10 percent of outstanding debt for unsecured creditors who are owed $50,000 or less by the airlines. Larger unsecured creditors will receive stock in the newly merged airline, the value of which will be determined later. Combining US Airways with America West (NYSE: AWA) will create the nation's fifth largest airline. The merged airline will operate under the US Airways name but be based in Tempe, Ariz., America West's headquarters. The Washington (D.C.) Business Journal is a sister publication of The Business Journal Serving Greater Milwaukee. From usairways at vision.moundalexis.com Thu Aug 11 03:00:17 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 10 Aug 2005 23:00:17 -0400 (EDT) Subject: [US Airways] America West Picks Barclays for New US Airways Credit Card Message-ID: <20050810230004.L2686-100000@vision.moundalexis.com> 10 August 2005 ; The Conservative Voice America West Picks Barclays for New US Airways Credit Card http://www.theconservativevoice.com/ap/article.html?mi=D8BT1F701&apc=9004 --- America West Holdings Corp., which is planning to merge with US Airways Group Inc., is replacing Bank of America Corp. with a unit of Barclays PLC as provider of the US Airways credit card. The agreement with Barclays subsidiary Juniper Bank gives America West a signing bonus of $130 million, as well as a $325 million prepurchase of air miles, according to a Securities and Exchange Commission filing Tuesday. Bank of America currently provides America West with its FlightFund card. It also provides a credit card to US Airways customers. America West, which is based in Tempe, Ariz., said its contract with Bank of America will come due at the end of the year, and the Juniper card for the combined airline will be introduced in January of 2006. Juniper, which based in Wilmington, Del., provides cobranded credit cards to about 40 organizations including AirTran Airways, Carnival Cruise Lines, Frontier Airlines and Orbitz. US Airways has won approval to send its Chapter 11 turnaround plan, which is built upon its proposed merger with America West, to creditors for a vote. The plan would allow the Arlington, Va., carrier to emerge from bankruptcy and close on the merger with America West in late September or early October. From usairways at vision.moundalexis.com Thu Aug 11 03:00:34 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 10 Aug 2005 23:00:34 -0400 (EDT) Subject: [US Airways] US Airways to solicit creditors Message-ID: <20050810230018.F2686-100000@vision.moundalexis.com> 10 August 2005 ; Pacific Business News US Airways to solicit creditors http://pacific.bizjournals.com/pacific/stories/2005/08/08/daily27.html?jst=b_ln_hl --- US Airways has taken another step toward reorganization, which means another step toward merging with America West. In Arlington, Va., Tuesday, the the U.S. Bankruptcy Court of the Eastern District of Virginia authorized US Airways Group Inc. to solicit votes from its creditors in favor of its reorganization plan. The airline intends to mail the solicitations in one week. If the schedule doesn't slip, US Airways could reorganize next month. "Today's decision by the court approving our business plan was critical to our efforts to emerge from Chapter 11 and complete our merger with America West," said CEO Bruce Lakefield. "This is one of many important steps we have taken to create the financial stability we need to become a stronger competitor." The merger plan is to keep the US Airways name but put the America West executive team in operational charge. The two carriers have already said that a big part of their plan is to expand service to Hawaii, and America West has already announced plans for service to Hawaii from Phoenix beginning in December, and from Las Vegas beginning early next year. America West currently serves Hawaii only by selling code-share tickets on Hawaiian Airlines, which shares its terminal at the Phoenix International SkyPort, while US Airways has no service to Hawaii but does have an extensive route network to competing vacation locales in the Caribbean. The reorganization plan says creditors with allowed claims of $50,000 or less will get a cash payment of 10 percent of the claim. Other creditors holding allowed unsecured claims will receive stock in the reorganized company. US Airways has commitments of $565 million in new equity investment and participation by suppliers and business partners that, together with the new equity, are expected to provide the company with $1.5 billion in liquidity. From usairways at vision.moundalexis.com Thu Aug 11 12:50:52 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 11 Aug 2005 08:50:52 -0400 (EDT) Subject: [US Airways] Juniper to issue US Airways credit card Message-ID: <20050811084920.B2686-100000@vision.moundalexis.com> 11 August 2005 ; Delaware Online Juniper to issue US Airways credit card http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20050811/BUSINESS/508110329/1003 --- Deal to take effect after airline completes its merger with America West BY TED GRIFFITH / The News Journal Juniper Bank has made a $455 million deal to become the credit card issuer for US Airways after the troubled airline completes its merger with America West. The small Wilmington-based credit card issuer is displacing Bank of America, which will become the largest U.S. credit card issuer late this year after completing its $35 billion buyout of Wilmington-based MBNA Corp. Bank of America, which already ranks as the nation's fifth-largest credit card issuer, currently issues cards through deals with both US Airways and America West. Both cards allow holders to accumulate frequent flier miles. "We're looking forward to the opportunity to issue the cobranded card for the new US Airways." said Ben Brake, Juniper's managing director of marketing. "We're thrilled." It appears the financial resources of Juniper's new parent company, London-based Barclays PLC, one of Europe's largest banks, played a significant role in Juniper's winning the card relationship. Juniper has agreed to an upfront payment of $455 million when the airlines complete their merger, according to a US Airways regulatory filing. David Robertson, publisher of The Nilson Report, a credit card industry newsletter, said that Barclays is "signaling to the market its intention to support its investment in Juniper" by agreeing to spend hundreds of millions of dollars on the deal. Barclays last year acquired Juniper for $293 million, and Barclays officials have said they want to use Juniper as a way of gaining a share of the U.S. credit card market. As of the end of 2004, Juniper ranked as the 18th-largest U.S. credit card issuer, with outstanding cardholder balances of $1.5 billion, according to The Nilson Report. In contrast, Bank of America is a behemoth, with outstanding cardholder balances of $61.1 billion at the end of last year. And outstanding balances are expected to balloon to about $143 billion upon completion late this year of the MBNA acquisition. The headquarters for the combined credit card unit will be in Wilmington. Brake was tight-lipped about the details of the plan, including what will happen to current cardholders who have the Bank of America-issued cards. A Bank of America spokeswoman would say only that the change will have no immediate effect on cardholders. An America West spokesman said current cardholders will be able to keep their frequent flier miles. But he declined to comment on other aspects of the change, such as whether existing cardholders will stay with Bank of America after the merger is completed. Combined, the America West and US Airways cards represent a total of 3 million "active" accounts, people who use the cards regularly, Robertson estimated. Juniper won't start issuing the US Airways card until Jan. 1, at the earliest, according to the US Airways regulatory filing. Arlington, Va.-based US Airways, which is operating under bankruptcy protection, is scheduled to complete its merger with Tempe, Ariz.-based America West in the fall. The combined company will have its headquarters in Tempe, but use the US Airways name. According to the regulatory filing, there will be a two-year transition period in which both Bank of America and Juniper will be able to issue cards under the US Airways brand. After two years, Juniper gets exclusive rights. Robertson, the credit card industry newsletter publisher, said he wasn't aware of any other card deal that allowed competing card issuers to offer a card under the same brand. Partnering with airlines is attractive to credit card companies because it gives issuers access to high-spending customers who can fatten profits, said Tim Winship, publisher of FrequentFlier.com, which tracks frequent flier programs. "These frequent travelers are really a desirable demographic for the credit card companies," Winship said. JUNIPER BANK HEADQUARTERS: Wilmington EMPLOYEES: 650 ASSETS: $1.5 billion FOUNDED: 2000 PARENT COMPANY: London-based Barclays PLC Source: company, The Nilson Report From usairways at vision.moundalexis.com Thu Aug 11 12:52:34 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 11 Aug 2005 08:52:34 -0400 (EDT) Subject: [US Airways] It'll still be US Airways after merger Message-ID: <20050811085108.T2686-100000@vision.moundalexis.com> 11 August 2005 ; Philadelpha Daily News It'll still be US Airways after merger http://www.philly.com/mld/dailynews/news/local/12354314.htm --- And airline will retain Philly as major hub By MICHAEL HINKELMAN hinkelm at phillynews.com Even though US Airways is in bankruptcy, the US Airways name will survive when the nation's seventh- largest carrier officially combines with America West Airlines, probably next month. And Philadelphia will be the biggest of three major hubs for the combined airline, as well as the new airline's international gateway. Doug Parker, who is chief executive officer of America West and who will hold the same position at the combined airline, made the comments during a meeting yesterday at the offices of Philadelphia Newspapers Inc., parent of the Daily News and the Inquirer. Parker and other America West officials barnstormed the state Tuesday and yesterday, meeting with the governor, mayor, business leaders and US Airways employees. Parker came here to drum up support for the merger and to reassure local leaders that the merger would not diminish Philly's status as a major air hub. In May, America West and US Airways, which has been in bankruptcy since last September, agreed to merge. A U.S. bankruptcy judge earlier this week scheduled a hearing for final approval of US Airways' reorganization plan for Sept. 15, two days after shareholders of America West vote on the proposed merger. The goal of the combined company is to link two geographically distinct airlines into one designed to compete with lower-cost rivals, including Southwest Airlines. Parker expects the combined airline to be more competitive, with about $600 million more per year in savings and additional revenues than if the two airlines continued to operate separately. Passengers here would notice little change, he said, except for a small reduction in the number of daily flights to certain destinations. The biggest obstacle to be overcome, he said, was making two work forces work seamlessly as one. "We're combining two different [corporate] cultures, and we have to get them to work together," Parker said. "That's the hardest part." He did not say whether any jobs would be cut if the merger is approved, nor did he mention what impact ever-rising oil prices might have on the proposed airline's plan to be profitable. Unions representing both airlines are trying to resolve differences over employee seniority. "That's for the unions to deliver to the company, but I'm hopeful it will be fair and reasonable to everyone." Some labor groups also are upset that US Airways wants to scale back a proposed profit-sharing plan for workers and that the reorganization eliminates their representation on the board of directors. From usairways at vision.moundalexis.com Fri Aug 12 13:39:18 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 12 Aug 2005 09:39:18 -0400 (EDT) Subject: [US Airways] US Airways watch: 8/12/05 Message-ID: <20050812093813.J2686-100000@vision.moundalexis.com> 12 August 2005 ; Pittsburgh Post-Gazette US Airways watch: 8/12/05 http://www.post-gazette.com/pg/05224/552726.stm --- By Dan Fitzpatrick, Pittsburgh Post-Gazette x Delta Air Lines is adding larger aircraft to the same New York-Boston-Washington, D.C., shuttle route traveled heavily by US Airways, increasing competition between the two troubled carriers. US Airways is in Chapter 11 bankruptcy for the second time in three years. Delta, which will replace the existing 120-seat 737s on the shuttle routes with 134-seat McDonnell Douglas jets in November, is also contemplating a bankruptcy filing. The shuttle flights are used heavily by business travelers. US Airways, which currently uses 120-seat Airbus-made jets, said it had no plans to change its planes on those routes. x America West Chief Executive Officer Doug Parker, in line to run the new US Airways if a merger of the two airlines happens this fall, has options to purchase 500,000 shares of America West stock that can be exercised at a price of $8.65 per share. They would be converted to options in the new, merged US Airways. America West awarded the options as an incentive for continued work on the merger of US Airways and America West, according to a regulatory filing. Parker gets to hang onto the options whether the airlines merge or not. Parker also will receive 196,000 stock appreciation rights, contingent on the merger, along with 41,250 units of restricted stock. x Several airlines, reeling from $66 per-barrel oil, are raising ticket prices again. United Airlines has increased prices $2 to $5 each way, and Delta Air Lines raised prices $10 on each leg for some markets and $3 to $5 per leg in markets where it competes with low-cost carriers. Continental Airlines matched Delta, and US Airways matched the increases on certain flights. x There is more speculation that Independence Air, which serves Pittsburgh International Airport, may go bankrupt or go out of business altogether. It recently lost $95.8 million in the second quarter and has only $66 million left. From usairways at vision.moundalexis.com Sat Aug 13 15:45:15 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 13 Aug 2005 11:45:15 -0400 (EDT) Subject: [US Airways] US Airways charges extra ticket fees Message-ID: <20050813114156.N673-100000@vision.moundalexis.com> 13 August 2005 ; Ireland On-Line US Airways charges extra ticket fees http://breakingnews.iol.ie/news/story.asp?j=152443050&p=y5z443756 --- US Airways has announced that it is introducing a fee for customers who request a paper ticket where an electronic ticket is possible. >From 1 October, 2005, a fee of 25 euro (31.10 USD) per ticket will be charged when the paper ticket is issued and the travel itinerary qualifies for electronic ticketing, or the customer requests that an E-ticket be printed at any US Airways ticketing location. "This change brings US Airways into line with the industry and will allow us to remain competitive in the marketplace," said Margaret Skinner, US Airways sales and marketing director UK and Ireland. US Airways operates daily seasonal transatlantic services from May to October to Philadelphia from both Dublin and Shannon. From usairways at vision.moundalexis.com Sat Aug 13 15:56:01 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 13 Aug 2005 11:56:01 -0400 (EDT) Subject: [US Airways] US Airways soon will be flying new colors Message-ID: <20050813115550.W673-100000@vision.moundalexis.com> 3 August 2005 ; The Charlotte Observer US Airways soon will be flying new colors http://www.charlotte.com/mld/charlotte/business/12376471.htm --- Will US Airways' repainted planes be white-ish, with a red racing stripe and navy-blue belly? That's the way they appear in an announcement distributed Friday that says the airline will uncover its new look later this month in five cities, including Charlotte. The one-page flier shows a plane behind a curtain, with a small sliver exposed. Asked if the colors in the announcement reveal a hint about the new look, an America West spokesman said: "Yeah." Because US Airways is merging with America West, planes will have a new color scheme and perhaps a new logo. A newly repainted plane will stop in Charlotte at 12:30 p.m. Aug. 23. From usairways at vision.moundalexis.com Sun Aug 14 13:36:02 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 14 Aug 2005 09:36:02 -0400 (EDT) Subject: [US Airways] US Airways union leader wary, hopeful Message-ID: <20050814093427.L673-100000@vision.moundalexis.com> 14 August 2005 ; Charlotte Observer US Airways union leader wary, hopeful http://www.charlotte.com/mld/charlotte/business/12379599.htm --- Jose Gomez says he is encouraged so far by America West's efforts TONY MECIA Staff Writer The phone rings in Jose Gomez's bare office off Tyvola Road. Gomez, the new local head of the union that represents US Airways' ticket agents, turns away from his laptop, swivels his chair and answers. It's Terri Pope, who manages US Airways' operations at the Charlotte airport and other airports in the Southeast. The two exchange greetings before he asks what she's hearing. "Unless it's classified information," Gomez asks, "what can you tell me about America West training in your region?" Since US Airways and America West announced their merger plans in May, US Airways' labor unions have been scrambling to learn about their future bosses -- and what they're up to. Such inquiries are more than mere curiosity about the boss. For Gomez and other union leaders, understanding management is crucial: He's likely to bargain with executives to produce new labor contracts for the 8,000-plus ticket agents the airlines employ. He says he's encouraged by the early signals he's getting from the new leaders, but he doesn't yet know if they will be different from previous executives. Figuring out how management thinks should come easily to Gomez. For nearly half of his 34-year career with US Airways and a predecessor airline, PSA, Gomez was in management. Union friends sometimes refer to that period in his life as being on "the dark side," he says. Gomez, 54, took over in June as president of the local branch of the Communications Workers of America. Representing about 750 workers in Charlotte and other Southeastern airports, Gomez's is the largest airport local. Wearing tennis shoes and jeans at Charlotte's CWA headquarters, Gomez points to a big file cabinet that contains grievance paperwork. Helping resolve employee grievances with management is the mainstay of most union leaders' jobs. But in addition, Gomez is bracing for repeated meetings about the upcoming merger. Integrating labor unions is a complicated and potentially perilous task. Each of the US Airways and America West labor groups will be merged under different rules, depending on which union represents which workers. At stake are workers' pay, benefits and seniority -- and potentially whether they'll have jobs. In the CWA's case, the integration will be overseen by the National Mediation Board because America West ticket agents are represented by a different union, the International Brotherhood of Teamsters. Because the US Airways CWA has twice as many members as the America West Teamsters, the board could deem the CWA the surviving union. Or it could order a vote among workers to determine which union will survive. Any new contract talks could start after that's settled, which could happen by the end of the year. Gomez says he'd like to help restore some of the pay and benefits agents have forfeited in recent bargaining rounds with US Airways. And he says he'd like to prevent the new regime from turning his profession into a short-term job. After multiple rounds of seniority-based layoffs, the average US Airways ticket agent has 14 years of seniority. At America West, agents average less than three years on the job. Gomez says the difference also springs from lower pay -- the most senior US Airways agents make $17 an hour, compared with $13.10 at America West. He says he's been reading articles and checking with industry contacts to learn about the new management team. He's also read brief bios of all the top America West executives. Most of them have less airline experience than US Airways' union leaders. Gomez, for instance, started with the airline handling bags in Los Angeles in 1971, at a time when America West CEO Doug Parker was still in grade school. The son of Spanish parents, Gomez attended the University of San Diego before he caught the airline bug. Gomez says he likes the culture Parker has set at America West, compared with US Airways. He says America West's employee newsletters are humorous and lighthearted, not "as serious as a heart attack." He likes the fact that Parker often meets personally with employees. Just last week, the America West chief stopped in Charlotte to visit with a small group of US Airways employees, although Gomez was in Washington on union business. In an Observer interview, Parker said he knows plenty of employees believe prior executives let them down. He suspects workers are wondering why they should trust him, to which he replies: "You shouldn't. I wish you would, just out of faith, but you don't owe me that. I owe it to you to earn it." On substance, though, Gomez says it's still too early to tell how Parker might differ from previous US Airways leaders. Gomez said he worries that America West posted job openings this summer for gate agents in Los Angeles, which he interprets as a move to bolster the ranks of America West agents before the merger closes. America West now has about 33 percent of all ticket agents of the combined company. If the figure reaches 35 percent, that could trigger a representation election, which the company might favor because the Teamsters have not yet negotiated a labor contract for America West's ticket agents. An America West spokesman said the airline is not increasing the number of ticket agents and that any hiring is to fill vacancies. Despite those hiring suspicions, Gomez says he's encouraged by signals from the airline. His contacts say management likes to be creative in cutting costs, such as slicing the employee training budget by outsourcing that work. "I'm hopeful that at least with America West management in charge, they're not going to reach into our pockets every chance they get," he says. From usairways at vision.moundalexis.com Mon Aug 15 22:32:03 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 15 Aug 2005 18:32:03 -0400 (EDT) Subject: [US Airways] Air Wisconsin Begins Service As US Airways Express Carrier Message-ID: <20050815183111.W673-100000@vision.moundalexis.com> 15 August 2005 Air Wisconsin Begins Service As US Airways Express Carrier http://biz.yahoo.com/prnews/050815/cgm037.html?.v=21 --- APPLETON, Wis., and ARLINGTON, Va., Aug. 15 /PRNewswire/ -- Air Wisconsin Airlines Corporation (AWAC) and US Airways marked the start of their new relationship this past weekend, with the first AWAC aircraft operating under the US Airways Express name taking flight on Aug. 13, 2005. The first US Airways Express-AWAC flight was flight #3801 from Burlington, Vt., to Philadelphia, continuing on to Charleston, S.C. This initial flight was flown by a Canadair Regional Jet aircraft. In total, Air Wisconsin will operate 16 daily departures as US Airways Express by the end of August. The initial schedule includes nonstop service between Milwaukee, Wis., and both Charlotte, N.C., and Philadelphia, as well as nonstop Philadelphia- Minneapolis service. In September, the AWAC US Airways Express schedule will expand to include a total of 25 markets with approximately 88 daily departures, primarily flown to and from Philadelphia. By February 2006, AWAC will operate a fleet of 70 Canadair Regional Jets for US Airways Express. "Air Wisconsin has an excellent reputation as a professional and reliable carrier, and we are delighted to welcome them into the US Airways Express network," said Andrew P. Nocella, US Airways senior vice president of planning. "We are pleased to have the opportunity to join the US Airways Express team," said Geoff Crowley, Chairman, President and CEO of AWAC. "We respect the work US Airways has put forth to continue to be a competitive, innovative force in this industry and look forward to being a part of this professional team." Air Wisconsin Airlines Corporation (AWAC) operates as the largest privately held regional airline in the United States. System-wide, AWAC schedules more than 500 departures per day with a fleet that includes 70 Canadair Regional Jets and 12 BAe-146 Jets. Approximately 3,600 people make up the AWAC team. US Airways is the nation's seventh-largest airline, serving 183 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways, US Airways Shuttle and the US Airways Express partner carriers operate approximately 3,400 flights per day. For more information on US Airways flight schedules and fares, visit US Airways online at http://usairways.com , or call US Airways Reservations at 1-800-428-4322. US Airways is a member of the Star Alliance, which was established in 1997 as the first truly global airline alliance to offer customers global reach and a smooth travel experience. The other members are Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, Spanair, TAP Portugal, Thai Airways International, United and VARIG Brazilian Airlines. South African Airways and SWISS will be integrated during the course of the next 12 months. Overall, the member carriers offer more than 15,000 daily flights to 795 destinations in 139 countries. From usairways at vision.moundalexis.com Tue Aug 16 12:12:28 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 16 Aug 2005 08:12:28 -0400 (EDT) Subject: [US Airways] US Airways, America West employees get 'tease' Message-ID: <20050816081017.X673-100000@vision.moundalexis.com> 16 August 2005 ; Pittsburgh Post Gazette US Airways, America West employees get 'tease' http://www.post-gazette.com/pg/05228/554476.stm --- E-mail offers a peek at new airplane look By Dan Fitzpatrick, Pittsburgh Post-Gazette US Airways and America West Airlines are giving employees just a glimpse of what their airplanes will look like if the two carriers merge in the fall. There is a thick navy blue stripe. A thin red stripe. Some whitish gray. And some wavy lines. No more is visible from a sneak peek e-mailed to employees recently. They will have to wait for a week from today, when a newly painted Airbus A320 will pass through Philadelphia, Pittsburgh, Charlotte, N.C., Las Vegas, and Phoenix and allow employees and the public their first look at a new design for the new US Airways. Until then, airline enthusiasts will no doubt be dissecting the e-mailed tease, which shows the silhouette of a plane hidden behind a set of purple curtains. Speculation about the complete plan is already a hot topic of discussion on airline Internet sites such as www.airliners.net, www.usaviation.com and www.flyertalk.com, where people have been posting mock-ups and suggested designs for months. Seeing a glimpse of the actual design, one poster on airliners.net gushed: "Wow that's awesome. Can't wait to see what it looks like." Another groused: "They are teasing us." A third predicted the design "will make me fall asleep when I see it." The only clue so far is the e-mail image sent to employees. Between a parting of the curtains, a small section of the new aircraft is visible, showing a silvery-white top and lines that appear to resemble the waves on America West's white, turquoise and red planes. Covering the bottom of the plane are a thick navy-blue stripe and a thin red stripe -- colors currently visible on US Airways' fleet. At the front, but not visible through the curtains, is a circle containing four logos -- America West, PSA Airlines, Piedmont Airlines and Allegheny Airlines, according to a source familiar with the design. The circle is a nod to US Airways' 65-year history -- the airline was known as Allegheny in the 1960s and 1970s (when it was the nation's sixth-largest carrier) before it became USAir in 1979, the year Congress deregulated the airline industry. USAir purchased PSA and Piedmont in the 1980s and then changed its name to US Airways in 1997, the same year it changed the colors of its aircraft to the current dark blue and gray, with red and white stripes. US Airways employee Wally Bohl, for one, is pumped up about the new look. The 49-year-old gate supervisor from Beaver is an ardent collector of airline memorabilia, his garage and basement overflowing with old airline models, ads, pins, flight timetables, annual reports, in-flight magazines, baggage tags and in-flight cutlery. The introduction of a new design provides him with more fodder for his collection and new hope for a carrier that has struggled through two bankruptcies in three years. "I think it's an exciting time," he said. In fact, Bohl wants to see the new design in person next Tuesday. He plans to ride the newly painted plane while wearing his old PSA uniform from the 1960s and 1970s, complete with a PSA tie and a button with the old PSA advertising jingle: "Our Smiles Aren't Just Painted On." His only concern is about the fit. "I have to modify my pants a little," he said. "I have gone from a 32 to a 36." There are more out there like Bohl, and US Airways and America West are playing to employee loyalty by encouraging longtime workers to wear their old uniforms next Tuesday. The nod to history could also be a way for America West and US Airways to bring about a smooth integration of the two work forces -- considered the No. 1 merger obstacle by both carriers. Bohl indicated that attention to such detail could work. When told the new aircraft design would include the logos of Allegheny, PSA and Piedmont, Bohl said, "That's cool." The keen attention paid to aircraft design is a "key to understanding the mind-set of the typical airline employee," said local airline analyst Bill Lauer. Working for an airline requires people to "subordinate" their individuality to a team, a uniform and a set of team colors. "Whatever can be done to demonstrate to some of these people that management and the new airline being created is sensitive to their own employment history, I think, is probably a very constructive thing," Lauer said. From usairways at vision.moundalexis.com Tue Aug 16 12:24:04 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 16 Aug 2005 08:24:04 -0400 (EDT) Subject: [US Airways] LCC: It's new US Airways symbol on N.Y. Stock Exchange Message-ID: <20050816082312.D673-100000@vision.moundalexis.com> 16 August 2005 ; Beaver County Times & Allegheny Times LCC: It's new US Airways symbol on N.Y. Stock Exchange http://www.timesonline.com/site/news.cfm?newsid=15041068&BRD=2305&PAG=461&dept_id=478569&rfi=6 --- The new US Airways symbol on the New York Stock Exchange after the airline's merger with America West will be LCC, as in low-cost carrier. "LCC sets the standard for what we know we must be in order to succeed," said a statement issued by America West last week. "It is important to remember that LCC does not mean cheap," the statement said. "On the contrary, although it certainly pertains to how we fund internal capital projects and what kind of returns we need from those projects, it has more to do with being nimble, quick decision-makers who can adapt in a rapidly changing marketplace." The merger partners also will show off their new airplane paint job in a tour of its five biggest airport locations on Aug. 23. The new look of the new US Airways will be revealed at 9:30 a.m. in Pittsburgh. Other road shows are scheduled in Philadelphia, Las Vegas, Phoenix and Charlotte, N.C. From usairways at vision.moundalexis.com Wed Aug 17 12:59:58 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 17 Aug 2005 08:59:58 -0400 (EDT) Subject: [US Airways] US Airways Watch Message-ID: <20050817085836.X673-100000@vision.moundalexis.com> 17 August 2005 ; Pittsburgh Post Gazette US Airways Watch http://www.post-gazette.com/pg/05229/554945.stm --- o If US Airways and America West Airlines merge this fall, the number of executives would drop by 35 percent, from 52 corporate officers currently at both airlines to 34. US Airways and America West unveiled the full team, which still needs board approval, to employees yesterday. Of the 34, 11 are from US Airways and the rest are from America West, yet another sign that the much smaller Tempe, Ariz.-based airline will be in charge of the combined operation. The new US Airways will be run by America West Chief Executive Officer Doug Parker. More cuts in the executive ranks could be made once the merger is complete. Among the US Airways senior vice presidents and vice presidents who did not make the new team announced yesterday were Anita Beier, Chris Chiames, Jim Schear, Sharon Groff, Douglas Leo, Rosemary Murray, Helen Tremont, Stephen Morrell and Bill Trousdale. o United Airlines has agreed to use commuter carrier Colgan Air for flights from Washington Dulles International Airport to six cities, including Allentown and State College, and Charleston, W.Va. Colgan, which also flies for US Airways, will start the United Express flights Oct. 4. From usairways at vision.moundalexis.com Wed Aug 17 22:54:24 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 17 Aug 2005 18:54:24 -0400 (EDT) Subject: [US Airways] Soft landing likely at CVG if Delta files Message-ID: <20050817185250.W673-100000@vision.moundalexis.com> 17 August 2005 ; The Cincinnati Post Soft landing likely at CVG if Delta files http://news.cincypost.com/apps/pbcs.dll/article?AID=/20050817/NEWS01/508170352 --- By Bob Driehaus Post staff reporter More flights or a drastic cut in service? The tales of two Pennsylvania cities might be instructive about the fate of Cincinnati/Northern Kentucky International Airport should Delta Air Lines file for bankruptcy. Airports in Philadelphia and Pittsburgh were both U.S. Airways hubs before the airline filed for Chapter 11 bankruptcy protection in 2002. Today, as U.S. Airways prepares to emerge from bankruptcy, Philadelphia has more U.S. Airways flights than ever and is enjoying record business. Pittsburgh, meanwhile, has lost more than half its 510 U.S. Airways daily flights and more than half of its total daily departures. Delta is struggling to avoid bankruptcy as it continues to bleed money in daily operations. Monday, the airline announced the sale of regional carrier Atlantic Southeast Airlines for $425 million to SkyWest to pay down $100 million of debt under its loan agreement with GE Commercial Finance and other lenders. Should Delta be forced into bankruptcy, no one knows what changes the airline and the bankruptcy judge who would be in charge of restructuring the airline would make, but analysts and aviation insiders mostly agree that Cincinnati/Northern Kentucky is positioned to reap similar rewards to Philadelphia International Airport, given its importance to Delta and its efficiency of operation. "A Delta bankruptcy, I think, at least at the beginning, would have a minimal effect on Cincinnati. Longer term, it may mean more regional jet substitutions for mainline aircraft, but in Cincinnati that has been done already," said Ray Neidl, an analyst with Calyon Securities in New York. "I don't think it would have much of an effect on the Cincinnati hub. It is an important hub. I can't see Delta sharply cutting it or abandoning it." Delta has owned Comair since 2000 and since then has shifted many of its flights from large, mainline Delta jets onto Comair's smaller, regional planes. The process accelerated after the Sept. 11, 2001, terrorist attacks, when air travel took a major dip. Doug Goldberg, president of Landrum & Associates, a Cincinnati-based airport consultant, also thinks Cincinnati/Northern Kentucky has positioned itself to avoid cuts in Delta service or loss of its hub status. "My sense is that they've done a lot of things on (the airport's) end to keep the operating costs down, developing a master plan that is flexible," he said. "I think (Delta) would probably make choices elsewhere before they would reduce traffic in Cincinnati. I think this market is one of the last markets that would be affected." One strength of Cincinnati/Northern Kentucky airport that is often overlooked, he said, is its international flight service, which is lucrative and growing. International flights include six Delta flights to Europe, Canada, Mexico and the Caribbean; a daily Air France flight to Paris; and 14 Comair flights to North American destinations. All three airlines have seen increases in international travel, including a 35 percent jump on the Air France flight in July compared to July 2004; a 13.6 percent jump in Comair international flights; and a 9.8 percent jump in Delta international flights. "I do a lot of international travel, and I'm impressed with Cincinnati's service," Goldberg said. Pittsburgh's and Philadelphia's airports each have similarities to Cincinnati/Northern Kentucky as well as important differences: Philadelphia International: The airport has its cake and is eating it, too. Not only did the U.S. Airways bankruptcy spur low-fare carriers Southwest Airlines and Frontier Airlines to enter the market in spring 2004, U.S. Airways has added flights there, too. But that happy outcome was far from certain, according to Mark Pesce, airport spokesman. "It's safe to say that we basically had a contingency for every possible scenario," he said, from liquidation of the airline to expansion to anything in between. "We're extremely happy that they've continued to do well," he said. But U.S. Airways chose to cut flights at its Pittsburgh and Charlotte, N.C., hubs and shift some of them to Philadelphia. The city was best positioned because of the high number of regional fliers who began or ended their trips at the airport rather than just passing through. Those origin and destination travelers represent 60 percent of all travelers at the airport, Pesce said. The other 40 percent of passengers use the airport for connecting flights. The distinction is an important one to a city's economy. While connecting travelers help generate money through landing fees and some eating and shopping, origin and destination travelers tend to put more money into the economy through parking fees, car rentals and more eating and shopping after arriving at the airport early to catch their flights. Cincinnati/Northern Kentucky airport differs significantly from Philadelphia in that respect because 72 percent of travelers just pass through on connecting flights. Still, the number of local fliers has increased dramatically in the last year in response to Delta's fare restructuring, which has made tickets more affordable on most flights. That bodes well for the airport, Goldberg said. "The change in fare structure at Delta has really reduced the amount of leakage (travelers driving to other airports to get cheaper tickets). That change in fare structure by Delta has really made a difference," he said. As a result of Philadelphia's good fortune, no jobs were lost at the airport and a record 31 million air travelers used the airport in the fiscal year that ended June 30 - nearly 5 million more than in the previous year. Pittsburgh International: Greater Cincinnati's regional neighbor at the mouth of the Ohio River has absorbed several major blows as U.S. Airways cut service at Pittsburgh. But the move has had a silver lining for the Steel City. In a series of moves, U.S. Airways cut the number of flights at Pittsburgh from 510 daily to 215, said JoAnn Jenny, airport spokeswoman. That cost the airline 9,000 jobs in the Pittsburgh area. The airport peaked at 610 total daily departures but now has about 300. The total number of passengers dipped from a high of 18 million to 12 million to 14 million, Jenny said. The loss of all those flights meant budget cuts and revenue shortfalls that had to be reconciled. The airport enlisted the help of Pennsylvania and the Federal Aviation Administration to tackle the problem. The Pennsylvania legislature legalized slot machine gambling statewide and will share a portion of the revenue with the airport. The FAA has agreed to allow the airport to use a passenger facility charge, a tax added to every ticket, to pay down debt. The silver lining to the story has been an influx of low-fare competition in what was a "fortress hub" dominated by U.S. Airways. "With (U.S. Airways) scaling back, it was actually an opportunity to attract more competition and offer lower fares," Jenny said. And the competition responded. Since U.S. Airways declared bankruptcy, Southwest, Air Tran, USA 3000, America West and Independence Air have swooped in. While the airport lost millions of passengers annually on connecting flights, the number of local passenger has surged because of the cheaper fares. Connecting fliers used to represent 80 percent of all passengers. Now half are local. "We've been able to increase the number of regional customers, which has led to increased parking and car rentals revenue," Jenny said. "Then, we just budget. It hasn't been the end of the world." The Pittsburgh airport has managed to avoid staff cuts as well, in part because it took over some airport service operations previously handled by U.S. Airways. From usairways at vision.moundalexis.com Wed Aug 17 22:56:53 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 17 Aug 2005 18:56:53 -0400 (EDT) Subject: [US Airways] US Airways says to restrict flying minors, pets Message-ID: <20050817185511.C673-100000@vision.moundalexis.com> 17 August 2005 ; Reuters US Airways says to restrict flying minors, pets http://today.reuters.com/business/NewsArticle.aspx?type=businessIndustry&storyID=2005-08-17T171815Z_01_N17249264_RTRIDST_0_BUSINESSPROIND-AIRLINES-USAIRWAYS-DC.XML --- WASHINGTON (Reuters) - US Airways Group Inc., said on Wednesday it was coordinating consumer policies with merger partner America West Airlines and would soon no longer fly unaccompanied minors on connecting flights or carry pets as cargo. US Airways said it was aligning three of its travel policies with those at America West, to take effect on Oct. 1. Children and adolescents ages 5 to 14 traveling as unaccompanied minors can fly US Airways only on nonstop flights. US Airways will make an exception for unaccompanied minors with ticketed reservations made prior to Aug. 17. They may travel on connecting flights through Nov. 1. Reservations for unaccompanied minor travel on connecting flights made after Aug. 17 will be honored through Sept. 30. Pets and other animals will no longer be accepted for travel as checked baggage or cargo. US Airways will make an exception for ticketed reservations made before Aug. 17 to carry pets as checked baggage, which will be honored through Nov. 1. US Airways says its pet cargo has been a good business through the years. "It's primarily dogs and cats," said spokesman David Castelveter. "But we have shipped rabbits; We have shipped birds." The policy change does not apply to the transportation of service animals such as seeing eye dogs. Also, passengers needing supplemental oxygen will no longer be able to purchase it on US Airways flights. The airline is working to implement new policies as a result of the FAA's recent approval of portable oxygen systems. The carriers hope to finalize their merger this fall in conjunction with US Airways' emergence from bankruptcy protection. From usairways at vision.moundalexis.com Wed Aug 17 22:59:16 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 17 Aug 2005 18:59:16 -0400 (EDT) Subject: [US Airways] US Airways, America West align policies Message-ID: <20050817185722.V673-100000@vision.moundalexis.com> 17 August 2005 ; Philadelphia Business Journal US Airways, America West align policies http://philadelphia.bizjournals.com/philadelphia/stories/2005/08/15/daily28.html?jst=b_ln_hl --- US Airways Group Inc. has aligned three of its policies with those of America West Group Holdings Corp. in preparation of the airlines' planned merger. The following changes will take effect Oct. 1: o Children between the ages of five and 14 who are traveling alone will be accepted by US Airways for travel only on nonstop flights. The fee for unaccompanied-minor travel will be $40. However, unaccompanied minors with ticketed reservations made before Aug. 17 may travel on connecting flights through Nov. 1. o Passengers needing supplemental oxygen will no longer be able to purchase it on US Airways flights. Pets will no longer be accepted for travel as checked baggage or cargo. o However, pets will be able to travel as checked baggage through Nov. 1 if the ticket reservation was made before Aug. 17. The policy change doesn't apply to service animals. "We have made these policy changes as part of our strategy to simplify the new airline's business while retaining service elements that are important to our customers," said Al Crellin, US Airways executive vice president of operations. "These changes are more in line with other low-cost competitors." Virginia-based US Airways (OTCBB: UAIRQ), which is the dominant airline at Philadelphia International Airport, is the nation's seventh-largest airline. The company expects to complete its $1.5 billion merger with Arizona-based America West in September or October. The combination of US Airways and America West will form a carrier that will rival Dallas-based Southwest Airlines Co. (NYSE: LUV) in size, with a wide choice of routes. The new company will take the US Airways name and be headed by America West Chief Executive Doug Parker. US Airways CEO Bruce Lakefield will be vice chairman following the merger. In a recent letter to employees issued by both companies, he and Parker named their picks for seven top executive positions. Six of the seven are America West (NYSE: AWA) executives. Once integrated, the new carrier plans on maintaining its hubs in Charlotte, Philadelphia and Phoenix, along with secondary hubs in Las Vegas and Pittsburgh. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. Last week, a federal judge authorized US Airways to solicit votes from its creditors in favor of its reorganization plan, one of the final steps necessary for the company to emerge from Chapter 11 bankruptcy protection and merge with America West. America West serves more than 90 destinations in the United States, Canada, Mexico and Costa Rica. From usairways at vision.moundalexis.com Wed Aug 17 23:00:54 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 17 Aug 2005 19:00:54 -0400 (EDT) Subject: [US Airways] US Airways attendant elected union president Message-ID: <20050817185917.N673-100000@vision.moundalexis.com> 17 August 2005 ; The Charlotte Observer US Airways attendant elected union president http://www.charlotte.com/mld/charlotte/business/12405746.htm --- TONY MECIA The Charlotte Observer A US Airways flight attendant from Charlotte was elected president of the airline's flight attendants' union on Wednesday. Mike Flores, who heads the Charlotte chapter of the union, will take over Oct. 17 from current president Teddy Xidas of Pittsburgh, the Association of Flight Attendants said in a notice posted on its Web site. Flores will lead the US Airways AFA as the airline merges with America West. Combining work forces of the two airlines is expected to be a major issue in the merger. From usairways at vision.moundalexis.com Thu Aug 18 11:35:28 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 18 Aug 2005 07:35:28 -0400 (EDT) Subject: [US Airways] US Airways: No more pets Message-ID: <20050818073416.B673-100000@vision.moundalexis.com> 18 August 2005 ; Beaver County Times & Allegheny Times US Airways: No more pets http://www.timesonline.com/site/news.cfm?newsid=15055951&BRD=2305&PAG=461&dept_id=478569&rfi=6 --- Children traveling alone will no longer be able to make connecting flights on US Airways, and animals won't be checked as baggage or cargo on flights after Oct. 1. The airline announced the coming changes on Wednesday as it aligns policies to prepare for its anticipated merger with America West. US Airways would not specify the number of children and animals it carries but said the number varies by season and is "significant." Children ages 8 to 14 have been allowed to fly alone on any US Airways flights, including ones with connections, for a fee. The fee has been $40 one way for nonstop trips or ones that didn't require a change in planes and $75 for trips that involved connecting flights. The fee climbed to $60 one way for transatlantic, Caribbean and Latin American nonstop flights and $90 to make connections on those international trips. Children ages 5 to 7 could fly unaccompanied on flights that did not stop or require a change in planes for a $40 one-way fee. The US Airways policy also charged only one fee for two or more children from the same family that were traveling together. Under the new policy, children traveling alone must be 5 to 14 years old and will pay a one-way additional cost of $40. Children traveling alone who already were ticketed by Wednesday will be allowed to make connecting flights through Nov. 1. Animals no longer will be accepted as cargo or baggage. US Airways will honor ticketed reservations made before Wednesday for pets, through Nov. 1. The airline charged $100 for animals carried in cargo and has a list of specifications on how the animals are to be crated. Additionally, passengers who need supplemental oxygen will no longer be able to purchase it onboard US Airways. However, the Federal Aviation Administration recently approved portable oxygen to be carried in the cabin if it is not compressed. Compressed oxygen concentrators are considered hazardous material by the FAA. But two units by AirSep Corp. and Inogen Inc. do not use compressed oxygen, according to the FAA. This new rule would allow passengers to use their own oxygen tanks instead of buying supplemental oxygen from airlines, the FAA said. In light of this rule, "the airline is working to implement new policies," US Airways said. The airline also said it will assist in making alternate plans for customers who already hold reservations for travel after Oct. 1 and will be affected by the changes. From usairways at vision.moundalexis.com Fri Aug 19 12:15:53 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 19 Aug 2005 08:15:53 -0400 (EDT) Subject: [US Airways] US Airways flight attendants pick president Message-ID: <20050819081453.Y673-100000@vision.moundalexis.com> 18 August ; Philadelphia Business Journal US Airways flight attendants pick president http://philadelphia.bizjournals.com/philadelphia/stories/2005/08/15/daily35.html?jst=b_ln_hl --- The US Airways Group Inc. flight attendants union has elected Mike Flores of Charlotte, N.C., as its new president. Flores succeeds Pittsburgh-based Teddy Xidas, who will leave the post in October. Flores is a flight attendant at the airline, which has the most airliners flying in and out of Philadelphia International Airport. As president of the master executive council, he will represent the airline's more than 5,000 flight attendants. Arlington, Va.-based US Airways (OTCBB:UAIRQ) is the nation's seventh-largest airline. The company expects to complete its $1.5 billion merger with Arizona-based America West Group Holdings Corp. in September or October. The combination of US Airways and America West will form a carrier that will rival Dallas-based Southwest Airlines Co. (NYSE:LUV) in size, with a wide choice of routes. The new company will take the US Airways name and be headed by America West Chief Executive Doug Parker. US Airways CEO Bruce Lakefield will be vice chairman following the merger. Once integrated, the new carrier plans on maintaining its hubs in Philadelphia, Phoenix and Charlotte, N.C., along with secondary hubs in Las Vegas and Pittsburgh. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. From usairways at vision.moundalexis.com Fri Aug 19 12:19:54 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 19 Aug 2005 08:19:54 -0400 (EDT) Subject: [US Airways] US Airways gets court approval to sell planes Message-ID: <20050819081831.J673-100000@vision.moundalexis.com> 18 August 2005 ; Reuters US Airways gets court approval to sell planes http://today.reuters.com/investing/financeArticle.aspx?type=mergersNews&storyID=2005-08-18T205431Z_01_N18448305_RTRIDST_0_AIRLINES-USAIRWAYS-UPDATE-1.XML --- WASHINGTON, Aug 18 (Reuters) - A federal bankruptcy judge approved a proposal on Thursday by US Airways (UAIRQ.OB) to sell four planes for $40 million and extended the airline's ability to tap its only source of cash through Oct. 25. Judge Stephen Mitchell of the U.S. Bankruptcy Court for the Eastern District of Virginia in Alexandria signed off on the sale and lease-back of four Boeing Co. (BA.N) 767s to Mountain Capital Partners LLC, an affiliate of Goldman Sachs Group, Inc. (GS.N). US Airways will receive $30.8 million when the sale is complete and another $10 million in 2009 after maintenance checks. The airline can keep about 40 percent of the proceeds and the balance will go to pay down some of its $700 million obligation to the federal board, which controls most of US Airways' bankable assets that include its pool of available cash. The Air Transportation Stabilization Board guaranteed the bulk of private financing that US Airways received after its first trip through Chapter 11 and still uses to fund its operations. Mitchell also approved an agreement between US Airways and the ATSB that gives the airline continued access to its cash and restructures the remaining debt so the airline can step out of bankruptcy and complete its merger with America West Airlines (AWA.N) this fall. From usairways at vision.moundalexis.com Fri Aug 19 12:20:57 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 19 Aug 2005 08:20:57 -0400 (EDT) Subject: [US Airways] US Airways Receives Court Approval to Sell Four Aircraft; ATSB Cash-Collateral Agreement Extended Until Late October Message-ID: <20050819082000.P673-100000@vision.moundalexis.com> 18 August 2005 US Airways Receives Court Approval to Sell Four Aircraft; ATSB Cash-Collateral Agreement Extended Until Late October http://biz.yahoo.com/prnews/050818/dcth050.html?.v=19 --- ARLINGTON, Va., Aug. 18 /PRNewswire-FirstCall/ -- Judge Stephen S. Mitchell of the U.S. Bankruptcy Court of the Eastern District of Virginia today cleared the way for US Airways Group, Inc. to sell four of its Boeing 767 aircraft and one spare engine to Mountain Capital Partners LLC, an affiliate of Goldman Sachs Group, Inc., as part of a new sale-leaseback agreement with Mountain Capital. The sale-leaseback agreement will provide US Airways with $30.8 million initially upon completion of the sale, and another $10 million after recurrent maintenance checks through 2009. US Airways has been operating under a month- to-month agreement with Mountain Capital, enabling the company to return planes and the spare engine as it takes delivery of new aircraft. Judge Mitchell also approved an agreement between US Airways and the Air Transportation Stabilization Board (ATSB) that extends through Oct. 25, 2005, the company's authorization to use the cash collateral that secures the ATSB's federally guaranteed loans. The agreement also will allow US Airways to retain approximately 40 percent of the proceeds from the sale of certain assets on which the ATSB holds liens. "Both of these transactions are key steps in our plans to provide additional liquidity and move us closer to emergence from Chapter 11 and completion of our merger with America West Airlines," said Ron Stanley, US Airways executive vice president finance and chief financial officer. From usairways at vision.moundalexis.com Fri Aug 19 22:34:20 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 19 Aug 2005 18:34:20 -0400 (EDT) Subject: [US Airways] Lakefield's US Airways Sells Jets; Northwest Strike? Message-ID: <20050819183411.M673-100000@vision.moundalexis.com> 19 August 2005 ; Forbes Lakefield's US Airways Sells Jets; Northwest Strike? http://www.forbes.com/work/management/2005/08/19/us-airways-northwest-cx_gl_0819autofacescan08.html --- Faces In The News Greg Levine, 08.19.05, 1:14 PM ET NEW YORK - US Airways (otc: UAIRQ) may not have bought the farm; but it seems to be selling the store. In its second trip through bankruptcy, the legacy carrier has come up with a way to make more money--for now, anyway: Putting a few of its aircraft on the block. Led by President and Chief Executive Bruce Lakefield, the tormented carrier said late Thursday night that it got the OK from a federal bankruptcy judge to sell four of its planes for $40 million. The goods for sale are 767s from Boeing (nyse: BA). It's a propitious time for Lakefield to be putting some more moolah in the company's coffers: On Thursday, discount category killer Southwest Airlines (nyse: LUV) announced it was beefing up its service out of Pittsburgh--a major US Airways hub. Meanwhile, in America's geographic Heartland, midnight is nigh for another troubled legacy. Eagan, Minn.-based Northwest Airlines (nasdaq: NWAC) returned to the negotiating table with its mechanics, cleaners and custodians on Friday, after presenting its "last best offer." The No. 2 U.S. airline is trying to wrest concessions valued at some $176 million from the Aircraft Mechanics Fraternal Association. AMFA Assistant National Director Steve MacFarlane said the carrier's offer is unacceptable, and that a strike is more likely. The workers are legally entitled to walk off the job at 12:01 A.M. ET. Northwest also handles a certain quantity of shipping; earlier this week, the union representing United Parcel Service (nyse: UPS) pilots said it'd honor a Northwest strike--if that happens--and refuse to fly any Northwest struck goods. From usairways at vision.moundalexis.com Tue Aug 23 12:35:46 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 23 Aug 2005 08:35:46 -0400 (EDT) Subject: [US Airways] US Airways to unveil its new logo and paint job Message-ID: <20050823083455.C673-100000@vision.moundalexis.com> 22 August 2005 ; Philadelphia Business Journal US Airways to unveil its new logo and paint job http://philadelphia.bizjournals.com/philadelphia/stories/2005/08/22/daily5.html --- The chief executives of US Airways Group Inc. and America West Group Holding Corp. will unveil the first aircraft painted in the new US Airways design Tuesday afternoon at Charlotte/Douglas International Airport in North Carolina. The aircraft will feature the colors, logo and other features of the merged airline. US Airways (OTCBB: UAIRQ), which is the largest operator at Philadelphia International Airport, expects to complete its $1.5 billion merger with Arizona-based America West next month or in October. The new company will take the US Airways name and be headed by America West Chief Executive Doug Parker. US Airways CEO Bruce Lakefield will be vice chairman following the merger. Once integrated, the new carrier plans on maintaining its hubs in Charlotte, Philadelphia and Phoenix, along with secondary hubs in Las Vegas and Pittsburgh. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. This month, a federal judge authorized US Airways, which is based in Arlington, Va., to solicit votes from its creditors in favor of its reorganization plan, one of the final steps necessary for the company to emerge from Chapter 11 bankruptcy protection and merge with America West. America West (NYSE: AWA) serves more than 90 destinations in the United States, Canada, Mexico and Costa Rica. From usairways at vision.moundalexis.com Tue Aug 23 12:39:45 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 23 Aug 2005 08:39:45 -0400 (EDT) Subject: [US Airways] US Airways Planes' New Look Reflects Practicality, Heritage Message-ID: <20050823083755.H673-100000@vision.moundalexis.com> 23 August 2005 ; The Washington Post US Airways Planes' New Look Reflects Practicality, Heritage http://www.washingtonpost.com/wp-dyn/content/article/2005/08/22/AR2005082201338.html --- By Keith L. Alexander When designing the new look for US Airways, America West executives turned their back on high-salaried Madison Avenue image consultants. Instead, they interviewed employees from both of the merged airlines: flight attendants, pilots, mechanics and executives. The result: a look that's neither too corporate nor too casual, according to Travis Christ, America West's vice president of marketing who oversaw the new US Airways design. Christ said the merged airline's style would best be described as "right down the middle between American and Southwest [airlines]." The newly redesigned planes, which make their debut today, aspire to a brighter appearance than US Airways' current fleet. America West has scrapped the dark blue paint at the top of the aircraft, replacing it with white. The change was partly to keep the interior of the planes cooler during layovers in the Phoenix and Las Vegas heat. The dark blue now runs along the belly of the aircraft. The plane also sports what America West executives call a heritage circle near the cabin door representing US Airways' history. The circle contains the logos of airlines now part of US Airways: Piedmont, Allegheny, PSA and America West. The purpose of the circle is to give current US Airways employees who worked for the former airlines a sense of "pride and respect," Christ said. The airline kept the U.S. flag that is emblazoned on the tail and side of the current US Airways aircraft. The flag has also been added to the tips of the winglets. The new aircraft also will have a red stripe along the length of the belly. Airline executives said the design creates a woosh-like effect of a waving flag. America West will take the first newly painted aircraft around the country to show off to its employees. BizClass was among the first to get an early peek. "We tried to add a little bit of style to it," Christ said. "We think that US Airways today is known for being a little too button-down business. And if you look at America West, we're a little too casual. So we wanted something that was the best representation of the new company, that is a business-casual theme." The new look is part of a rebranding of Arlington-based US Airways as it heads toward its merger with America West, expected to be completed by the end of September, barring any objections from America West's shareholders and US Airways' creditors. America West is spending more than $18 million to paint the 200 planes in the combined airlines' fleet. It will take 18 months to complete the redesign, which is the first for US Airways since 1997 when it changed its name from USAir. The US Airways-America West union was billed as a merger, although the new airline will be based in Tempe, Ariz., America West's home town, and will be overseen primarily by America West executives. Executives portray the new US Airways as a hybrid -- a low-cost carrier in its cost structure and fares but also a traditional airline with features such as international routes and first-class cabins. The new look isn't so much of a departure from the current appearance that it will require massive redesign inside the terminals. Executives wanted to keep the changes to a minimum to save costs on redoing ticket counters, airport gates and other facilities. The redesign does not extend to inside the cabin, where the configuration and legroom will remain unchanged, said Scott Kirby, America West's executive vice president of marketing and sales. While the new airline will offer East Coast travelers more flights to Las Vegas, Phoenix and Hawaii, don't expect additional transcontinental flights to San Francisco or the Los Angeles area. The airline plans to focus mainly on cities where it has hubs or major operations such as Pittsburgh, Philadelphia, Charlotte, Las Vegas, Phoenix and Washington's Reagan National Airport. "Other destinations have become intensively competitive and fuel prices make them uncomfortable," Kirby said. "We are going to concentrate on our core strengths and areas where we think we will be profitable even with high fuel prices." From usairways at vision.moundalexis.com Wed Aug 24 01:30:12 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 23 Aug 2005 21:30:12 -0400 (EDT) Subject: [US Airways] Flying Colors: New paint scheme unveiled for US Airways planes Message-ID: <20050823212911.G673-100000@vision.moundalexis.com> 23 August 2005 ; The Lexington Dispatch Flying Colors: New paint scheme unveiled for US Airways planes http://www.the-dispatch.com/apps/pbcs.dll/article?AID=/20050823/APF/508230971 --- By PAUL NOWELL AP Business Writer A bright, freshly painted Airbus A320 dropped into Charlotte/Douglas International Airport on Tuesday flashing a sneak preview of the paint scheme US Airways plans to use after merging this fall with America West Airlines. Incoming chief executive, Doug Parker, and Bruce Lakefield, the sitting CEO and president of US Airways who will become vice chairman when the merger is completed this fall, were inside the plane, joined by flight attendants and other employees. "We are here to celebrate the upcoming merger along with honoring the past of two great airlines," Parker said as airline workers posed for photographs in front of the plane. "The merger is proceeding well and we anticipate closing the deal in late September or early October." Flight attendant Sean Griffin flew in from Massachusetts to see the unveiling of the company's new design at US Airways' busiest hub. The prototype also stopped in Philadelphia and Pittsburgh before heading west to Las Vegas and Phoenix. "This company has gone through so many bad things," Griffin said. "It's nice to have something positive happen." The new design starkly contrasted with the largely blue US Airways jet nearby on the tarmac. The scheme includes elements from both carriers' existing designs, according to the company. The final design came from an in-house team at America West that turned to pilots, flight attendants, mechanics and executives from both companies for guidance, Parker said. The redesigned planes scrapped the dark blue paint at the top of US Airways' aircraft in favor of white to try to keep the planes cooler during layovers in Phoenix and Las Vegas. Dark blue paint runs along the bottom of the aircraft. The new design also features a circle near the cabin door that pays homage to the history of US Airways. It contains logos of the four airlines that are now part of US Airways, including Piedmont, Allegheny, PSA and America West. The new paint scheme won't require a massive redesign inside airport terminals. Company officials consciously settled on a design with that in mind as they try to keep down costs, Parker said. US Airways has filed for bankruptcy twice in the past three years. The merger is designed to create a national low-fare airline that can compete with Southwest Airlines and other discount carriers. America West has competed strongly against Southwest at hubs in Las Vegas and Phoenix. From usairways at vision.moundalexis.com Wed Aug 24 12:30:20 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 24 Aug 2005 08:30:20 -0400 (EDT) Subject: [US Airways] Celebrating a new look Message-ID: <20050824082745.P673-100000@vision.moundalexis.com> 24 August 2005 ; The Philadelphia Enquirer Celebrating a new look http://www.philly.com/mld/inquirer/business/12458022.htm --- US Airways, America West debut a logo, paint job. By Tom Belden Inquirer Staff Writer Leaders of the soon-to-be-merged US Airways and America West Airlines expect the carriers' cultural integration to be their toughest challenge - and they jumped headlong into it yesterday at Philadelphia International and four other airports. The airlines staged a daylong celebration of a new aircraft paint scheme and logo that pay tribute to five airlines, past and present, that will be represented by the US Airways name. The side of each plane, just to the right of the passenger door, will be adorned with a "heritage logo," with U-S in the middle, surrounded by the logos of America West and three airlines subsumed by US Airways in the 1970s and 1980s: Allegheny, Piedmont and PSA. The new color scheme uses white for most of the fuselage, but leaves intact the US Airways typeface and stylized flag on the tail. The first plane to get the paint job, an Airbus A320, skipped yesterday from Philadelphia to Pittsburgh, Charlotte, N.C., Las Vegas and Phoenix, carrying officials from the companies and showing the colors to employees and local officials. Two dozen retired or longtime US Airways employees, wearing their old uniforms from the various carriers, came along for the ride. "Today is all about tradition," America West chairman and chief executive officer W. Douglas Parker, who will run the merged airline, said at the Philadelphia stop. "We need to run an efficient operation and take care of our customers. But we don't want to lose sight of who we were." Parker came up with the idea of celebrating US Airways' legacy as he surfed the Internet, finding Web sites run by former employees of the old airlines that celebrated the history of each. As the fleet of more than 700 planes is repainted over the next few years, US Airways will keep the old paint schemes of its predecessors on four jets, Parker said. The companies have said they will take two to three years to fully integrate their workforces. But for US Airways employees, after three years of gloomy prospects, pay cuts, and two trips through Bankruptcy Court, "the mood has changed," said US Airways president and chief executive Bruce R. Lakefield, who will be vice chairman of the new company. "People believe we actually have a future." Marianne Moore, a Piedmont and US Airways flight attendant for 34 years who dressed for the day in her multicolored Piedmont uniform from the 1970s, said many US Airways employees shared her optimism about the merger. "They're ecstatic," she said. "They haven't had anything to be hopeful about in a long time." From usairways at vision.moundalexis.com Wed Aug 24 12:33:20 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 24 Aug 2005 08:33:20 -0400 (EDT) Subject: [US Airways] US Airways gives a nod to its history with tail logos, paint schemes Message-ID: <20050824083021.J673-100000@vision.moundalexis.com> 24 August 2005 ; Pittsburgh Post-Gazette US Airways gives a nod to its history with tail logos, paint schemes http://www.post-gazette.com/pg/05236/558710.stm --- Airline aims to foster employee loyalty, join two corporate cultures By Dan Fitzpatrick, Pittsburgh Post-Gazette [photo] EVERYTHING OLD IS NEW AGAIN: Upon the completion of its merger with America West Airlines, US Airways plans to use four "heritage" plane designs that include logos from airlines that shared US Airways' history. They include Allegheny Airlines, America West, Pacific Southwest Airlines and Piedmont Airlines (images of the four designs will cycle in that order). As a freshly decorated red, white and blue US Airways jet taxied at the Pittsburgh International Airport yesterday, one tarmac worker gave the new paint job a stern thumbs down -- reflecting the beleaguered pessimism of a twice-bankrupt airline. [photo] Wearing a vintage Piedmont Airlines uniform, US Airways flight attendant Marianne Moore sits on a newly painted US Airways Airbus 320 yesterday at the Pittsburgh International Airport during an unveiling of the new US Airways plane design. But the retooled design, unveiled yesterday for the first time, also urges employees to think of happier times, when the carrier wasn't US Airways or even USAir but Allegheny Airlines, Pacific Southwest Airlines and Piedmont Airlines. The US Airways predecessor carriers of the 1950s, '60s, '70s and '80s are all a part of the new look, with their logos gracing the side of each newly painted plane, near the door. There will also be four "throwback" planes, each featuring the original colors and tail designs. A smile wraps around the nose of a red-and-orange Pacific Southwest plane, homage to PSA's California-inspired motto: "Our Smiles Are Not Just Painted On." The red-and-blue Piedmont plane features the signature "speed bird" on its tail, once a familiar sight in the Southeast. The red-and-blue Allegheny model recalls the two-triangle logo once known to travelers across southwestern Pennsylvania. The retro-design strategy is part of an attempt to foster employee loyalty and bring together disparate cultures as US Airways prepares for a merger this fall with America West Airlines, which also will have its own teal-colored throwback plane. The integration of different employees groups will be critical, with labor peace in many ways determining how well the new carrier operates. Both airlines are trying to honor the history of an airline that began in 1939 as All American Aviation, became Allegheny in 1953, changed its name to USAir in 1979, acquired Piedmont and PSA in 1987 and changed its name again in 1997 -- to US Airways. America West has always been America West in its short history, which dates to 1983. When thinking about a new design for the merged US Airways, "we wanted to do it in a way that recognized our employees," said America West Chief Executive Officer Doug Parker, so the two airlines can "move forward together." "That is the primary reason we did this," Parker added, glancing around the terminal at a crowd of employees, many of whom were craning their necks for a look at the tall, boyish-looking executive who will run US Airways if the merger happens. The throwback approach had many converts yesterday. US Airways flight attendant Dolly Knopick showed up with an aqua-colored Allegheny Airlines uniform from 1967, complete with pillbox hat. Her sister, Carol Chaft, wore an Allegheny outfit from the mid 1970s, a vintage scarf around her neck. US Airways worker Wally Bohl showed up with an "I Love PSA" tie. US Airways flight attendant Marianne Moore slipped on a kaleidoscopic Piedmont uniform. "This is a nice touch," said Bill Gray, who represents US Airways flight crew training instructors as president of the Transport Workers Union Local 547. Invoking the designs of old was "classy," Gray added, a recognition that the "heritage of the employees is an important part of the corporate culture." The retro designs generated the most excitement by far at the airport yesterday. They also were a hit on the Internet chat boards afterwards. "These are awesome," wrote one poster on www.usaviation.com. "Those retro planes rule!" wrote another. [photo] Sisters and US Airways flight attendants Dolly Knopick, left, and Carol Chaft model vintage Allegheny Airlines uniforms at the Pittsburgh International Airport yesterday during the unveiling of the new US Airways' plane design. Knopick's outfit is from 1967 and Chaft's is from the mid-1970s. Added a third enthusiast: "I think it is great for morale of those employees with the former airlines." The smile on the PSA plane is a "welcome reminder of happier days." While the throwbacks generated the most buzz yesterday, the design of most planes in the combined 360-mainline jet fleet will not differ all that much from the colors in US Airways' current fleet. The big change is that the colors will be lighter, a necessary move for the hotter climates of Phoenix and Las Vegas, two America West hubs. The dark blue covering the top of US Airways' current planes will be replaced by an off-white, flanked by red and blue stripes across the bottom. The tail will stay blue, with a white US Airways flag and red trim. Wavy stripes on the tail and back of the plane are a nod to America West's current design. The cost of repainting each plane will be about $50,000 -- with 360 jets in the mainline fleet, that will push the total cost to at least $18 million. The airlines also said the new design will appear on the 350 regional planes that fly as part of the US Airways Express network. Parker -- who also showed off the new look yesterday in Philadelphia, Charlotte, N.C., Las Vegas and Phoenix -- emphasized in an interview that Pittsburgh will continue to be an "important" part of the US Airways network after the merger, and that there are no plans to add or take away service here. "What is good for Pittsburgh is good for US Airways," he said. Parker also admitted that he may have to change some minds about US Airways, acknowledging that US Airways has had "trouble" providing a high level of customer service over the last several years. "We are committed to restoring the reliability of US Airways," he said. Outgoing US Airways Chief Executive Officer Bruce Lakefield, also in Pittsburgh yesterday, appeared relieved to be handing the reins of the company to Parker, who is almost two decades younger than he. When asked what he would do after the merger, Lakefield joked: "I am going to kick up my feet, I am going to have a big glass of wine and I am going to say, 'Doug Parker, you better not [mess] it up.' " From usairways at vision.moundalexis.com Thu Aug 25 13:02:19 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 25 Aug 2005 09:02:19 -0400 (EDT) Subject: [US Airways] US Airways lands a last-minute tax break Message-ID: <20050825090105.I673-100000@vision.moundalexis.com> 25 August 2005 ; Charlotte Observer US Airways lands a last-minute tax break http://www.charlotte.com/mld/charlotte/business/12469104.htm --- TONY MECIA Staff Writer US Airways is likely to save several million dollars a year in state jet-fuel taxes, thanks to a new tax break approved Wednesday by the General Assembly. Under the bill, which heads to Gov. Mike Easley for his signature, airlines can seek rebates of fuel taxes paid in excess of $2.5 million a year. It is unclear precisely how much individual carriers have paid in N.C. fuel taxes, but legislators believe the threshold is high enough that the change will benefit only US Airways. A separate provision of the measure allows racing teams and any "motorsports sanctioning body" to avoid paying taxes on fuel for corporate-jet travel to any race or sponsor event -- a provision that will benefit the cluster of race teams headquartered north and east of Charlotte. To battle surging oil prices, U.S. airlines have been taking measures to conserve fuel, but they're also turning to states for tax relief. Oil prices closed at a new high Wednesday of $67.32 a barrel on the New York Mercantile Exchange, surpassing a record from nearly two weeks ago. Sen. David Hoyle, a Gaston County Democrat, said a US Airways official approached him and Sen. Daniel Clodfelter, D-Mecklenburg, a few months ago and said the airline would begin trucking fuel into North Carolina instead of buying it here -- unless the state agreed to cap fuel taxes. "That ain't bull," Hoyle said. "That's fact." However, Charlotte/Douglas International Airport does not allow fuel trucks, and ferrying fuel aboard aircraft tends to be more expensive than the typical practice of buying it direct from a pipeline. A US Airways spokesman declined to discuss conversations with legislators, saying in a statement: "This legislation is consistent with that passed in other states for their hub carriers to limit the tax exposure on jet fuel." Charlotte is US Airways' largest hub and home to about 5,300 of the airline's 23,000 workers. The carrier is in the final stages of completing a merger with America West Airlines, which will shift the company headquarters to Arizona from suburban Washington but leave Charlotte operations mostly intact. A report by the General Assembly's financial analysts estimates the legislation will cost the state about $5 million a year in lost revenue. But Hoyle says that analysis wrongly assumes US Airways would have continued buying fuel in North Carolina. He said he believes the bill saves $2.5 million in revenue for the state. In addition, US Airways is a major employer in the state, and the airline is a vital economic development engine in Charlotte and other communities, he said. In the budgets of US Airways and the state, a few million here or there has no large financial effect. US Airways' 2004 revenues were $7.1 billion. The state's budget is $17.2 billion. Other airlines have benefited from helpful tax policies. In March, the Georgia legislature approved a $15 million cap on fuel taxes, a move estimated to save Atlanta-based Delta Air Lines about $12 million a year. Texas, home to major hubs of Continental Airlines, Southwest Airlines and American Airlines, does not tax jet fuel. In North Carolina, the state already offers fuel-tax rebates to airlines for fuel bought here but consumed while flying outside the state's borders. Allen said he is unsure how much the airline will save from North Carolina's change, as the figure depends on future oil prices. In July, US Airways said it paid an average of $1.68 per gallon of jet fuel in the second quarter, 57 percent more than in the same period a year earlier. On the exemption for racing teams, Sen. Tony Rand, D-Cumberland, said he championed the incentive after meeting at Lowe's Motor Speedway with the N.C. Motorsports Association. Although other companies are paying higher fuel-tax bills for their aircraft, racing teams are under increasing pressure to move to other states, Rand said. "We thank the Lord it's a North Carolina sport," he said. "We just need to let them know how much we appreciate their making North Carolina home." From usairways at vision.moundalexis.com Fri Aug 26 01:58:08 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 25 Aug 2005 21:58:08 -0400 (EDT) Subject: [US Airways] U.S. Airways Will Allow Animals in Cargo Hold Message-ID: <20050825215740.G673-100000@vision.moundalexis.com> 25 August 2005 ; WLTX 19 U.S. Airways Will Allow Animals in Cargo Hold http://www.wltx.com/news/news19.aspx?storyid=29998 --- CHARLOTTE, N.C. (AP) - To avoid hearing growls or protest from several hundred German shepherds and their owners, U.S. Airways is waiving a rule prohibiting animals from traveling in cargo holds. Last week, the airline announced it was banning animals from cargo holds, part of a move to align policies with those of America West before the carriers merge in a few weeks. After October first, animals no longer will be accepted in checked baggage or cargo. That didn't apply to people who bought tickets before the announcement, as long as they finished their travel by November first. That didn't help contestants in the National German Shepherd Dog Show scheduled for November first at the Cabarrus Arena and Events Center in Concord, North Carolina. The event ends on November fifth, meaning some dog owners would have to scramble to get out of town with their dogs. Dog show officials and the Cabarrus County Convention and Visitors Bureau talked to U.S. Airways and the policy was amended. From usairways at vision.moundalexis.com Sat Aug 27 13:17:46 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 27 Aug 2005 09:17:46 -0400 (EDT) Subject: [US Airways] US Airways proposes settlement with PBGC Message-ID: <20050827091700.V673-100000@vision.moundalexis.com> 26 August 2005 ; Pensions & Investments Online US Airways proposes settlement with PBGC http://www.pionline.com/news.cms?newsId=2777 --- US Airways Inc., Arlington, Va., and the PBGC reached a proposed settlement to resolve the agency.s roughly $2.5 billion in claims in the airline.s Chapter 11 bankruptcy protection case, according to court documents. The airline would pay the PBGC $13.5 million in cash and grant the agency a $10 million, seven-year note with interest accruing at 6% annually. US Airways would also grant the PBGC 70% of the stock that goes to the firm.s unsecured creditors. US Airways filed the proposal today with the U.S. Bankruptcy Court in Alexandria, Va., which is overseeing the company.s Chapter 11 reorganization. Earlier this year, the PBGC took over the underfunded US Airways pension plans for flight attendants, machinists and passenger service agents. The agency estimated the three plans had $1.7 billion in total assets and $4.2 billion in liabilities. Jeffrey Speicher, a PBGC spokesman, could not comment on the proposed settlement by press time. US Airways is requesting a Sept. 2 hearing on the proposed settlement. From usairways at vision.moundalexis.com Sat Aug 27 13:19:18 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 27 Aug 2005 09:19:18 -0400 (EDT) Subject: [US Airways] Put U.S. Airways on London route Message-ID: <20050827091809.O673-100000@vision.moundalexis.com> 27 August 2005 ; The Arizona Republic Put U.S. Airways on London route http://www.azcentral.com/arizonarepublic/opinions/articles/0827satlet271.html --- In the Aug. 23 editorial "Jolly Good," comment was made that British Airways had not yet fulfilled its promise to add another daily non-stop flight between Phoenix and London. Rather than encourage British Airways to add this service, why not encourage our "new" hometown airline, U.S. Airways, to provide same. U.S. Airways is approved for trans-Atlantic service to the United Kingdom and has the equipment to meet this route's needs. The result could be a "Jolly good show, old chap!" - Keith Grayson, Scottsdale From usairways at vision.moundalexis.com Tue Aug 30 01:54:41 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 29 Aug 2005 21:54:41 -0400 (EDT) Subject: [US Airways] US Airways Implements Flexible Travel Policy, Cancels Flights Due to Hurricane Katrina Message-ID: <20050829215231.C673-100000@vision.moundalexis.com> 29 August 2005 ; PR Newswire US Airways Implements Flexible Travel Policy, Cancels Flights Due to Hurricane Katrina http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-29-2005/0004095822&EDATE= --- ARLINGTON, Va., Aug. 29 /PRNewswire-FirstCall/ -- US Airways has implemented its flexible travel policy and canceled flights to and from cities along the Eastern Gulf Coast due to Hurricane Katrina. All US Airways and US Airways Express flights to and from New Orleans and Pensacola, Fla., have been canceled for Monday, Aug. 29, as well as originating flights from New Orleans and all Pensacola service until 2 p.m. Central time, on Tuesday, Aug. 30, 2005. US Airways will evaluate the resumption of service in these cities after conditions are assessed later today. US Airways Express service to Jackson, Miss., and Mobile, Ala., has been canceled for today. US Airways Express operations in Birmingham have been canceled through tomorrow morning's originating flight, and service to and from Huntsville and Montgomery, Ala., also has been suspended for this afternoon, with the resumption of evening flights being evaluated later in the day. US Airways Express Tallahassee service is expected to operate unaffected by Hurricane Katrina today. Customers with itineraries for travel to and from the following destinations can make changes to their itineraries and US Airways will waive the standard change fee and advance reservation and ticketing requirements: -- Aug. 26-29: Pensacola and Tallahassee, Fla.; -- Aug. 27-29: Mobile and Montgomery, Ala., and Jackson; -- Aug. 29-30: Birmingham and Huntsville, Ala.; and -- Aug. 27-Sept. 5: New Orleans* For flights canceled due to these weather conditions, US Airways will provide the following options to customers, at no extra cost: -- Reschedule travel to originate up to seven days later for all destinations except New Orleans, for which travel can be rescheduled up to one year later; -- Re-accommodation on alternate flights on US Airways, or on another airline if an alternative flight does not depart within four hours; -- Customers en route can return to their city of origin and reschedule travel to originate up to seven days later (one year later for New Orleans); or -- Receive a refund for the full value of the ticket. If US Airways continues to operate to the affected destinations, customers can still make certain changes without incurring the standard change fee, advance reservation or ticketing requirements. Some itinerary changes are subject to fare availability; should the original fare not be available, customers are responsible for the applicable difference in fares. Allowed changes include: -- The entire itinerary can be moved forward or delayed, up to seven days (one year for New Orleans) from the scheduled origination date. The length of travel cannot be changed; or -- The full value of wholly unused tickets can be applied toward the purchase of a ticket to an alternate destination, with travel to originate within seven days (one year for New Orleans) of the scheduled origination date. -- If alternate arrangements cannot be confirmed, customers can stand by for their desired flights without incurring the standby fee. * Passengers can rebook their travel for up to one year for New Orleans only. All customers must rebook and have their tickets reissued by Sept. 5, 2005, and travel must commence within one year from original date of ticket issuance. Certain discounted tickets, which may include those purchased via discount travel Web sites may not qualify for a waiver of fees or routing options as outlined in our Flexible Travel policy. To determine if a ticket qualifies for a change as outlined in our Flexible Travel policy, please contact either the discount travel company from which the ticket was purchased, or US Airways at 1-800-428-4322. If the ticket was purchased through US Airways for travel on airlines other than US Airways, US Airways Shuttle, or US Airways Express, the policies of the other airline apply. For more information on US Airways and US Airways Express flight schedules and fares, visit usairways.com. From usairways at vision.moundalexis.com Tue Aug 30 01:56:25 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 29 Aug 2005 21:56:25 -0400 (EDT) Subject: [US Airways] Hurricane prompts US Airways to cancel flights Message-ID: <20050829215442.D673-100000@vision.moundalexis.com> 29 August 2005 ; Charlotte Business Journal Hurricane prompts US Airways to cancel flights http://charlotte.bizjournals.com/charlotte/stories/2005/08/29/daily6.html?jst=b_ln_hl --- US Airways Group Inc. has canceled flights to and from several Gulf Coast cities because of Hurricane Katrina. The airline, which operates its largest hub at Charlotte/Douglas International Airport, says all flights to and from New Orleans and Pensacola, Fla., have been canceled for Monday. Additionally, all originating flights from those cities have been cancelled until Tuesday afternoon. Also, US Airways Express service to Jackson, Miss., and Mobile, Ala., were canceled Monday. US Airways Express operations in Birmingham have been canceled through Tuesday morning's originating flight. Service to and from Huntsville and Montgomery, Ala., has been suspended for Monday afternoon. Virginia-based US Airways says it will evaluate the resumption of service in those cities after it reassess weather conditions. US Airways (OTCBB:UAIRQ) expects to complete its $1.5 billion merger with Arizona-based America West Group Holdings Corp. in September or October. The new company will take the US Airways name and be headed by America West Chief Executive Doug Parker. US Airways CEO Bruce Lakefield will be vice chairman following the merger. Once integrated, the new carrier plans on maintaining its hubs in Charlotte, Philadelphia and Phoenix, along with secondary hubs in Las Vegas and Pittsburgh. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. This month, a federal judge authorized US Airways to solicit votes from its creditors in favor of its reorganization plan, one of the final steps necessary for the company to emerge from Chapter 11 bankruptcy protection and merge with America West. America West (NYSE:AWA) serves more than 90 destinations in the United States, Canada, Mexico and Costa Rica. US Airways operates 34 gates at Charlotte/Douglas International Airport. From usairways at vision.moundalexis.com Tue Aug 30 13:12:09 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 30 Aug 2005 09:12:09 -0400 (EDT) Subject: [US Airways] US Airways, PBGC going to court Message-ID: <20050830091125.M673-100000@vision.moundalexis.com> 30 August 2005 ; Beaver County Times & Allegheny Times US Airways, PBGC going to court http://www.timesonline.com/site/news.cfm?newsid=15120631&BRD=2305&PAG=740&dept_id=478554&rfi=6 --- ARLINGTON, Va. - A U.S. Bankruptcy Court judge will hear arguments Friday on approving a tentative settlement on the Pension Benefit Guaranty Corp's $2.5 billion claim against US Airways. The PBCG has assumed responsibility for the pension plans of US Airways flight attendants, machinists and passenger service agents. However, the agency contended that bankrupt US Airways should cover its unpaid minimum funding obligations to the pension plans. According to bankruptcy court filings, US Airways believes PBGC's calculation of the claim is somewhat overstated. US Airways is proposing that it pay PBGC $13.5 million on or about the effective date of the reorganization plan, as well as a $10 million, seven-year note with a yearly interest rate of 6 percent. In addition, PBGC will receive 70 percent of the stock going to the airline's unsecured creditors. Judge Stephen S. Mitchell will hear the case. From usairways at vision.moundalexis.com Tue Aug 30 13:13:06 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 30 Aug 2005 09:13:06 -0400 (EDT) Subject: [US Airways] US Airways drops flights to Gulf area Message-ID: <20050830091209.Q673-100000@vision.moundalexis.com> 30 August 2005 ; Beaver County Times Allegheny Times US Airways drops flights to Gulf area http://www.timesonline.com/site/news.cfm?newsid=15120474&BRD=2305&PAG=461&dept_id=478569&rfi=6 --- ARLINGTON, Va. - In response to Hurricane Katrina, US Airways has implemented a flexible travel policy and has canceled flights to and from the eastern Gulf Coast. All of Monday's US Airways and US Airways Express flights to and from New Orleans and Pensacola, Fla., were canceled, as was service to Jackson, Miss., and Mobile, Ala., the airline said in a news release. Pensacola service will be suspended until 2 p.m. today, as will flights out of New Orleans. Operations in Birmingham, Ala., were suspended through this morning. Tallahassee, Fla., service was expected to operate unaffected by the hurricane. Customers with itineraries to or from the following destinations can change their itineraries with no change fee or advanced reservation and ticketing requirements: Aug. 26 to 29, Pensacola and Tallahassee; Aug. 27 to 29, Mobile and Montgomery, Ala., and Jackson; Aug. 29 and 30, Birmingham and Huntsville, Ala.; and Aug. 27 to Sept. 5, New Orleans. For flights canceled because of the hurricane, US Airways offers customers the following options: Reschedule a flight for up to seven days later, or a year later for New Orleans; take an alternate flight on US Airways or another airline if available; return to the city of origin (for customers en route) with the same rescheduling options as above; or receive a full refund. Some tickets bought through discount-travel Web sites may not qualify for the flexible travel policy. If tickets were bought through US Airways for another airline, the other airline's policy applies. From usairways at vision.moundalexis.com Wed Aug 31 12:47:04 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 31 Aug 2005 08:47:04 -0400 (EDT) Subject: [US Airways] Republic Airways to fly for US Airways Express Message-ID: <20050831084612.L673-100000@vision.moundalexis.com> 31 August 2005 ; The Charlotte Observer Republic Airways to fly for US Airways Express http://www.charlotte.com/mld/charlotte/business/12520038.htm --- The Carolinas Republic Airways to fly for US Airways Express AIRLINES Republic Airways said Tuesday it plans to start flying 28 70-seat Embraer 170 jets for US Airways Express beginning next month. The Indianapolis-based company agreed to buy the planes from US Airways, plus takeoff and landing slots at major airports, as part of a $100 million deal. The planes fly mostly out of Washington, although that could change after US Airways completes its planned merger with America West by early October. Labor unions have objected to the planned sale because it is unclear what would happen to the US Airways workers who now operate the planes. -- TONY MECIA From usairways at vision.moundalexis.com Wed Aug 31 12:48:02 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 31 Aug 2005 08:48:02 -0400 (EDT) Subject: [US Airways] Flexible travel policy extended for US Airways customers Message-ID: <20050831084713.N673-100000@vision.moundalexis.com> 31 August 2005 ; Beaver County Times Allegheny Times Flexible travel policy extended for US Airways customers http://www.timesonline.com/site/news.cfm?newsid=15127340&BRD=2305&PAG=461&dept_id=478569&rfi=6 --- US Airways has extended its flexible travel policy through today for customers traveling to or from Pensacola and Tallahassee, Fla., Jackson, Miss., and Montgomery and Mobile, Ala. The policy allows travelers to change their tickets, without penalty, within some time limitations or receive a full refund. To determine whether a ticket qualifies for the policy, call US Airways at (800) 428-4322. Traffic through the New Orleans airport is expected to resume no earlier than Monday. US Airways Express operations managers in Jackson and Mobile will evaluate resumption of service today. All US Airways and Express employees in the areas affected by Hurricane Katrina are accounted for, with no injuries reported, the airline said Tuesday. Phone and power outages have prevented reaching employees in Jackson. US Airways has also established an employee relief fund for victims of Katrina, and has donated 5 million Dividend Miles to help the American Red Cross with relief efforts. From usairways at vision.moundalexis.com Wed Aug 31 22:31:06 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 31 Aug 2005 18:31:06 -0400 (EDT) Subject: [US Airways] US Airways updates service after storm Message-ID: <20050831183012.I673-100000@vision.moundalexis.com> 31 August 2005 ; Business Week US Airways updates service after storm http://www.businessweek.com/ap/financialnews/D8CATMGG6.htm?campaign_id=apn_home_down&chan=db --- AUG. 31 12:31 P.M. ET US Airways Group Inc. on Wednesday said it airlines resumed normal flight schedules at almost all Gulf state airports following Hurricane Katrina. The bankrupt airline operator said US Airways and US Airways Express returned to normal operations in all cities in the Central and Eastern Gulf Coast region, except New Orleans, where service has been canceled through the first flight on Sept. 7. US Airways said its flexible travel policy will remain in effect for customers in the affected states. The company said its operations in Pensacola, Fla., and Birmingham, Huntsville, and Montgomery, Ala., returned to normal on Tuesday, while flights in Mobile, Ala., resumed Wednesday morning. US Airways said Jackson, Miss., service will resume later today. US Airways shares were unchanged at 28 cents in over-the-counter trading. From usairways at vision.moundalexis.com Wed Aug 31 22:32:10 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 31 Aug 2005 18:32:10 -0400 (EDT) Subject: [US Airways] Republic leases aircraft for US Airways flights Message-ID: <20050831183107.O673-100000@vision.moundalexis.com> 31 August 2005 ; Birmingham Business Journal Republic leases aircraft for US Airways flights http://birmingham.bizjournals.com/birmingham/stories/2005/08/29/daily16.html?jst=m_ln_hl --- Republic Airways Holdings Inc. has leased three Embraer 170 aircraft previously slated for delivery to US Airways Group Inc. The planes will be leased from General Electric Commercial Aviation Services, a division of Connecticut-based General Electric Co. (NYSE:GE). They are the first of 28 aircraft that Republic will operate under the US Airways Express brand. Two of the planes will enter service Sept. 4. The remaining 25 will be phased-in over the next 12 months. In March, Republic Airways and its majority shareholder, Wexford Capital, loaned Virginia-based US Airways $125 million and made $110 million in additional financing available to help US Airways restructure its business and emerge from Chapter 11 bankruptcy protection. In exchange, US Airways agreed to let Republic Airways operate more regional flights for its US Airways Express and gave Republic 113 commuter slots at Reagan National Airport in Washington, D.C., and 24 commuter slots at New York's LaGuardia Airport, which US Airways then leased from Republic. Indianapolis-based Republic Airways (NASDAQ:RJET) is the parent company for regional carrier Chautauqua Airlines. US Airways (OTCBB:UAIRQ) announced plans in May to merge with America West Holdings Corp. (NYSE:AWA) of Arizona. The combination of US Airways and America West will create the sixth-largest airline in the United States, forming a carrier that will rival Dallas-based Southwest Airlines Co. (NYSE:LUV) in size, with a wide choice of routes. The new company will take the US Airways name and be headed by America West chief executive Doug Parker, who has been named CEO and chairman of the new company, which will be based in Arizona. US Airways is a leading carrier in the Birmingham market. The Retirement Systems of Alabama owned a majority of the voting shares of US Airways Group stock before the airline's most recent bankruptcy. From usairways at vision.moundalexis.com Wed Aug 31 22:33:06 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 31 Aug 2005 18:33:06 -0400 (EDT) Subject: [US Airways] US Airways resumes most Gulf Coast flights Message-ID: <20050831183210.U673-100000@vision.moundalexis.com> 31 August 2005 ; Pittsburgh Business Times US Airways resumes most Gulf Coast flights http://pittsburgh.bizjournals.com/pittsburgh/stories/2005/08/29/daily20.html?jst=b_ln_hl --- US Airways Group Inc. has resumed normal flight schedules in all cities served in the central and eastern Gulf Coast region, with the exception of New Orleans, following Hurricane Katrina. New Orleans service has been canceled through the originating flight on Sept. 7. Virginia-based US Airways and US Airways Express operations in Pensacola, Fla., and Birmingham, Huntsville and Montgomery, Ala., returned to normal Tuesday. Flights to and from Mobile, Ala., and Jackson, Miss., resumed Wednesday. US Airways (OTCBB:UAIRQ) expects to complete its $1.5 billion merger with Arizona-based America West Group Holdings Corp. (NYSE:AWA) in September or October.