From usairways at vision.moundalexis.com Tue Nov 1 13:41:27 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 1 Nov 2005 08:41:27 -0500 (EST) Subject: [US Airways] US Airways Exchanges Debt for Stock Message-ID: <20051101084049.S673-100000@vision.moundalexis.com> 28 October 2005 ; Forbes (AP) US Airways Exchanges Debt for Stock http://www.forbes.com/business/services/feeds/ap/2005/10/28/ap2307056.html --- US Airways Group Inc., operator of one of the country's largest airlines, said Friday it has exchanged about 4.2 million common shares for about $250 million in America West Airlines Inc.'s debt. US Airways, which merged with America West in August, said it exchanged 16 shares of US Airways common stock per $1,000 principal amount at maturity. Other than a small payment for interest, the company said it paid no cash for the transaction. The notes were originally issued in July 2003 and represented $87 million in debt, US Airways said, adding that this debt reduction will lower the company's interest expenses by $6.9 million a year. The company now has about 82 million shares outstanding. US Airways said the notes exchanged represented about 99 percent of the outstanding principal amount. "Converting debt to equity further strengthens our balance sheet while reducing annual interest expenses," said Derek Kerr, chief financial officer, in a statement. The company's shares fell 97 cents, or 4 percent, in after-hours trading after closing at $23.90 on the New York Stock Exchange. From usairways at vision.moundalexis.com Tue Nov 1 13:42:15 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 1 Nov 2005 08:42:15 -0500 (EST) Subject: [US Airways] US Airways to open complex for 750 in Arizona Message-ID: <20051101084128.T673-100000@vision.moundalexis.com> 29 October 2005 ; Pittsburgh Tribune-Review US Airways to open complex for 750 in Arizona http://pittsburghlive.com/x/tribune-review/trib/newssummary/s_388985.html --- US Airways, now based in Tempe, Ariz., plans to open an office complex there to house about 750 workers, a spokesman said Friday. The facility, which is to open in April, would include 70 customer relations positions relocated from Winston-Salem, N.C., which handle passenger complaints. Other relocations have not been determined, but none of the 750 jobs are slated to move from Pittsburgh, said spokesman Phil Gee. Other departments to be housed in the facility have not yet been determined. The Winston-Salem workers may either move to Arizona or accept a severance, he said. From usairways at vision.moundalexis.com Tue Nov 1 13:43:18 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 1 Nov 2005 08:43:18 -0500 (EST) Subject: [US Airways] US Airways revisits outsourcing Message-ID: <20051101084215.A673-100000@vision.moundalexis.com> 30 October 2005 ; The Charlotte Observer US Airways revisits outsourcing http://www.charlotte.com/mld/charlotte/business/13034577.htm --- With America West merger done, airline wonders if cuts went too far TONY MECIA Staff Writer Gene Tinker figures his task should have been simple: Figure out what airline offers the best fares to Maine for a family vacation next summer. Tinker, a retired packaging-products sales executive, doesn't use computers. So he picked up the phone. In a series of calls to US Airways, though, he says he couldn't find a reservations agent he could understand. "I could understand some of what they said, but not enough that I could understand where the conversation was going," Tinker said. When he asked to speak to a supervisor, he got cut off, he says. Fresh from a radical makeover in bankruptcy court and a merger with America West Airlines, US Airways is examining whether it went too far in shipping reservation-agent jobs overseas this summer. Nearly all reservations calls are now answered in the Philippines and Mexico by outside companies. Although call-center jobs continue to exit the U.S., increasing numbers of companies are reporting dissatisfaction with their outsourcing operations. A survey released in June by DiamondCluster International, a Chicago-based consulting firm, found that the number of companies prematurely ending an outsourcing relationship doubled to 51 percent from a year earlier. At the same time, companies' satisfaction with overseas service providers fell to 62 percent from 79 percent a year before. In the past two years, well-known companies such as Dell and Lehman Brothers have stopped sending certain calls abroad. Delta Air Lines, now trying to cut costs in a bankruptcy reorganization, ended a contract last year for one of its three Indian call centers after acknowledging "a few quality issues." Cuts too deep? At US Airways, all reservations calls from the U.S. went to its call centers in Winston-Salem and Pittsburgh as recently this summer. But to save money, the airline offered buyouts to reservations agents, closed the 800- worker Pittsburgh center in July and slimmed the Winston-Salem work force to 450 from 800.Winston-Salem handles calls only from elite-level frequent fliers, groups and other specialty areas. This month, in a signal that the cuts might have been too deep, the airline said it is hiring 30 agents in Winston-Salem. In a interview with the Observer shortly before the carriers merged last month, US Airways' new chief executive, Doug Parker, said the airline would study how well the outsourcing is working. "It's not an insignificant issue," he said. Parker noted that America West maintains reservations centers in Tempe, Ariz., and Reno, Nev., and sends none of the work abroad. "We believe there's real value in having America West employees who care about the company and who care about our customers," he said. Before leaving the top job at the airline when the companies merged, US Airways CEO Bruce Lakefield said the company's outsourcing was "going OK" and that there is a learning curve with any new workers. He said the carrier might not have made the move were it not for the company's dire financial outlook, which drove it into bankruptcy court last year. Charlotte is US Airways' largest hub and home to about 5,300 of its 38,000 workers. From Charlotte, it offers 518 daily flights to 116 nonstop destinations. Connecting to Latin America US Airways started outsourcing some customer-service work last year, when it hired Grupo Atento -- a Spanish firm with operations throughout Latin America -- to take calls related to its Internet site. Those jobs were not covered under the airline's contract with the Communications Workers of America, the union that represents customer-service agents. The Web site calls are handled in El Salvador. But when the airline filed for bankruptcy protection in September 2004, it reopened its contract with the CWA to try to save money. The union approved a proposal that offered buyouts to reservations agents and allowed the company to replace those jobs with outside labor. In the spring, the airline hired Atento to run a call center in Mexico City. It also hired PRC, formerly known as Precision Response Corp., to run a call center outside Manila in the Philippines and another in South Florida to handle calls from frequent fliers. PRC is a division of IAC/InterActiveCorp, the publicly traded technology conglomerate that also owns Charlotte-based LendingTree. The airline shifted the work abroad as more customers bypass call centers to buy tickets. In the fourth quarter of last year, 31 percent of US Airways' sales came from Web sites, up from 20 percent two years earlier, according to regulatory filings. In a move to drive even more business to the Internet, US Airways last year added a $5 fee to buy tickets through a call center. The company's Web site charges no fee. Those trends offer little solace to Tinker, the Charlotte retiree. He bought a computer a few years ago but gave it to his daughter after being unable to figure out how to work it, he said. A US Airways spokesman said he couldn't comment specifically on Tinker's experience but that the airline strives to offer the "highest possible customer-service experience available." Spokespeople for PRC and Atento did not return phone calls. US Airways officials declined to divulge the length of the contracts or how much it would cost to ditch them. Customer service changes Had Tinker called Continental Airlines, he would have spoken with a U.S.-based agent.Sending reservations jobs abroad "is counter to what we're doing here, and I don't think that you necessarily end up with the best product at the end of the day," Continental Airlines' chief financial officer told analysts in January. To Tinker, it seems as though customer service has changed a lot over the years. He called his insurance company once and talked to a worker in India. In the old days, he recalls department store workers almost tripping over each other to help customers. Today, Tinker says, "you almost have to tackle somebody" to pay for goods you want to buy. "Companies want your business, it seems," he said, "but they don't want to spend any money to help you out on customer service when you need help." Travel Tip Calling US Airways' reservations number, (800) 428-4322, will most likely get you a reservations agent in the Philippines or Mexico. However, US Airways customers buying tickets can also call the old America West reservations number, (800) 235-9292, to get agents in Tempe, Ariz., or Reno, Nev. Starting this month, those agents can book flights throughout the airline's expanded network, including flights from Charlotte. If you buy a ticket using either number, however, the airline will add a $5 charge to your ticket. It does not add the charge if you book a ticket over the Internet. From usairways at vision.moundalexis.com Tue Nov 1 13:44:27 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 1 Nov 2005 08:44:27 -0500 (EST) Subject: [US Airways] Cancer recurs in US Airways exec Message-ID: <20051101084319.T673-100000@vision.moundalexis.com> 30 October 2005 ; The Arizone Republic Cancer recurs in US Airways exec http://www.azcentral.com/arizonarepublic/business/articles/1030mcclelland30.html --- "Here we go again." Those were the first words Jeff McClelland and his wife said to each other in the doctor's office this summer when they found out his colon cancer had returned - again. It hadn't even been four months since the same doctor delighted the couple - on the America West executive's 46th birthday - with the news that he was cancer-free. The family was having a great summer, having just returned from a camp in Lake Tahoe. The McClellands joked with Dr. Jeffrey Isaacs that they expected a longer warranty on McClelland's latest surgery. "The last one lasted a year," they told him. "This only lasted six months." That he's taking his third battle with cancer in three years in stride is trademark McClelland. The father of four knows there's little he can do but put his trust in his doctors and pray, so he goes about business as usual. He has worked through cancer each time, the last when America West was negotiating two mergers, including the successful bid for US Airways and soaring fuel prices. The Arizona Republic chronicled his story earlier this year. The article ended with McClelland toasting the good news that his cancer was gone with a cold beer at a Diamondbacks game. McClelland doesn't plan any changes this go-round. He started chemotherapy treatment again Monday, slept 10 hours and was back at his downtown Tempe office Tuesday. He went running Wednesday but lasted only about six minutes before he, in his words, keeled over from exhaustion. Later that morning, he met with the airline's pilots. The merger, which closed last month, is in a critical phase, with systems and employees from both sides learning to work together. As executive vice president and chief administration officer, McClelland is one of CEO Doug Parker's top lieutenants at the new US Airways, as the combined airline is called. It's a new job for the reserved executive, who was chief operating officer of America West. He's no longer overseeing operations (that job went to US Airways' operations chief). He still has labor relations and human resources and has added finance and legal. He also oversees US Airways' two commuter airline subsidiaries, Piedmont and PSA. "It's a good, eclectic group," he said. McClelland worked his appointments and travel schedule around his treatment last time and plans a similar routine this time. He expects to have 18 weeks of chemotherapy. Doctors are using two drugs this time in hopes of better targeting the area where the tumor keeps reappearing, McClelland said. In addition to Isaacs, he is now consulting Dr. Daniel Von Hoff. Von Hoff was lured away from the Arizona Cancer Center by the Translational Genomics Research Institute in Phoenix. He also practices oncology at the Virginia G. Piper Cancer Center in Scottsdale. McClelland remains resolutely upbeat, encouraged by the fact that his cancer hasn't spread. Each tumor has been in the same spot, ranging in size from a golf ball to a marble, and has been successfully removed. The latest surgery was in mid-August. "It's not running through the bloodstream or getting into organs or going off and doing odd things to me," he said. Medical advances are encouraging, too, he said. "It's not like I'm going back and doing the same thing every time. Every time they've looked at it, there's new technology out there, there's new meds," he said. "While in theory there's no cure, the fact of the matter is they keep getting better and better stuff." McClelland was able to maintain his work schedule through his last round of treatment (chemotherapy and radiation) because the side effects were relatively mild. He rarely vomited and didn't lose his hair. The drugs he's taking now have a higher incidence of side effects, he said, including hair loss. "That might be a little traumatic for me," he said with a laugh. Other than that, McClelland said he expects the only impact will be a few slow days here and there and a few half-days at home. "We've got enough going on here," he said. He's still taking his older sons to school whenever possible, a vow he made when his cancer reappeared the first time, and now tries not to miss any Little League games. They all went to Michigan and Washington, D.C., for fall break, the latter a stop that mixed business with pleasure. "Life's still great," McClelland said. From usairways at vision.moundalexis.com Tue Nov 1 13:46:30 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 1 Nov 2005 08:46:30 -0500 (EST) Subject: [US Airways] Aloha Hawaii, US Airways adds new Hawaii Services Message-ID: <20051101084427.D673-100000@vision.moundalexis.com> 31 October 2005 ; eTravel Blackboard Aloha Hawaii, US Airways adds new Hawaii Services http://www.etravelblaoard.com/index.asp?id=43887&nav=2 --- US Airways is pleased to announce NEW NONSTOP services, operated by HP between FOUR Hawaiian Islands; Honolulu, (Oahu); Kahului, (Maui); Lihue, (Kauai), and Kona, (Hawaii, the Big Island), and its Phoenix Hub. US Airways will also offer services from its Las Vegas hub to Kahului, Maui. These services will commence 16th December 2005 with expanded services being introduced in March 2006. With these new services, US Airways passengers can take more advantage of our low-fare service between Hawaii and other US Airways cities on Mainland U.S, Canada, Mexico and Costa Rica. See below for schedule details : [ table of flights ] US Airways will provide the new service aboard the 190-seat (14 First and 176 Economy Class) Boeing 757-200 (B757) aircraft. US Airways/ HP operated flights offer 7% commission on ALL friendly HP Full Published Fares, HP VUSA Airpass Fares and HP Group Fares. HP operated flights must be ticketed on HP/401 stock to attract 7% commission From usairways at vision.moundalexis.com Tue Nov 1 13:47:52 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 1 Nov 2005 08:47:52 -0500 (EST) Subject: [US Airways] US Airways adding 1,000 jobs in Valley Message-ID: <20051101084631.G673-100000@vision.moundalexis.com> 28 October 2005 ; The Business Journal of Phoenix US Airways adding 1,000 jobs in Valley http://phoenix.bizjournals.com/phoenix/stories/2005/10/31/story1.html --- When the America West Airlines-US Airways merger was announced earlier this year, a top concern was the potential for local layoffs. Now, with the merger complete, layoffs have yet to come. Rather, the Valley is gaining 1,000 jobs as the new Tempe-based US Airways moves operations to its desert base. The two carriers are melding a combined 38,000-employee work force, and expectations remain for as many as 7,000 layoffs and other staff reductions. But for now, local layoffs are a lessening concern. The new US Airways Group already has approximately 10,000 employees in the Valley, with operations at Phoenix Sky Harbor International Airport and its corporate headquarters in downtown Tempe. US Airways Chairman and Chief Executive Doug Parker told local business leaders at the M&I Power Breakfast Oct. 20 that the Valley will gain approximately 1,000 jobs in the short-term as the new combined airline relocates jobs to Arizona. Parker said about half of the Valley job gains will come from the former US Airways headquarters in Arlington, Va., just outside of Washington, D.C. Most of those will be management and administrative positions, Parker said. In addition, a number of other administrative and back office jobs are going to be relocated to the Phoenix area from a US Airways center in Winston-Salem, N.C. There also is speculation that US Airways will move another 800 operations and mechanics jobs from Pittsburgh to Tempe and Phoenix as part of its merger. Parker would not comment on that possible move, which would be in addition to the 1,000 positions already moving to Arizona. He said the carriers are continuing intergration efforts. The job gains are welcomed by business leaders relieved that the carrier is based here. "The impact of US Airways increasing its presence in the Valley can't be underestimated," said Mary Ann Miller, president and chief executive of the Tempe Chamber of Commerce. "First, there's the direct economic benefit: Newly created jobs mean people finding a place to live, going to a new dentist, and buying groceries and clothing, resulting in new jobs in construction and service and retail. Then there's the benefit to the community in the growth of an already actively involved corporation, from charitable giving to an increased tax base." Parker told executives at the Oct. 20 Power Breakfast, hosted by The Business Journal, that the airline would have decreased its community involvement and nonprofit giving had the merger resulted in a headquarters move out of Tempe. Having Tempe and Phoenix as a major operations hub also helps Sky Harbor Airport and the local aviation and service companies that feed off Phoenix operations by US Airways and rival Southwest Airlines. "With over 31,000 jobs located at Sky Harbor, that's 31,000 paychecks that go back out into the community. That's great for the Valley economy," said Deb Ostreicher, assistant aviation director of the city of Phoenix, which owns Sky Harbor Airport. "We are thrilled about the possibility of a thousand added jobs in the aviation industry as a result of the merger," she said. Ostreicher said having US Airways based and growing in the Valley, and Phoenix being one of Dallas-based Southwest's top hubs, send positive ripples throughout the regional economy. "The jobs that result in the Valley from having Sky Harbor here are not just pilots and flight attendants at the airport, but technology, travel and tourism jobs around the entire metropolitan area," she said. "As a result of the merger, we would expect jobs to be added not just at the airport, but throughout the Valley." From usairways at vision.moundalexis.com Tue Nov 1 13:49:03 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 1 Nov 2005 08:49:03 -0500 (EST) Subject: [US Airways] Benefit changes for US Airways retirees Message-ID: <20051101084754.C673-100000@vision.moundalexis.com> 1 November 2005 ; Beaver County Times Allegheny Times Benefit changes for US Airways retirees http://www.timesonline.com/site/news.cfm?newsid=15488189 --- Karen Ferrick Roman, Times Staff As of Dec. 31, US Airways will no longer extend drug benefits to its retirees older than 65. So, starting this week, three insurance companies are holding meetings to tell retirees about their health-care options. "We're not in the insurance business, but we negotiated with these carriers" - Health America, Highmark and UPMC Health Plan - to offer packages to the hundreds of local retirees who are older than 65, said Frank Schifano, president of the local chapter of the International Association of Machinists. Although this union represents mechanics, the meetings are open to all US Airways retirees. US Airways spokeswoman Amy Kudwa said certain retirees also have the option of continuing in the company's health-care plan, but at their own expense. She said the cost varies depending on the retiree's circumstances. Locally, more than 800 retirees live in the area. Jack Wurzel of New Brighton, treasurer of the retirees' club, had no count on how many are 65 or older. Pilots, for example, must retire at age 60, and others have taken early buyout packages from the airline. Not too surprisingly, retirees could be paying more for coverage. Since March, the company and a tax credit have subsidized health care for retirees who were 65-plus, Wurzel said. But a couple had to bear the full cost for spouses younger than 65. Under this plan, the monthly health-care cost ran about $130, with around $50 paid by the retiree and about $80 paid by the company, Wurzel said. But payment for a spouse under 65 was about $380 a month. That price could be expected to rise about 2 percent next year, he said. With a federal prescription plan, Medicare Part D, beginning next year, options are complicated, Wurzel said. Roughly, drug coverage would cost $150 a month from Highmark and $130 a month from Health America. He was unsure about approximate cost from UPMC, or about Medicare Part D. Plus, each plan differs in the details, Wurzel said, so retirees must slog through the details. "You've got to go to the meetings to find out what you're covering." The private insurance offered to US Airways retirees also is good only for those living in western Pennsylvania, Wurzel said. Retirees living out of the area are eligible for a different plan through Hartford Insurance, he said. Informational meetings on Medicare Part D also are scheduled for the general public, said Steve Rosatone, coordinator of the insurance programs at the Beaver County Office on Aging. People can enroll in Medicare Part D between Nov. 15 and May 15. After May 15, those who enroll will pay a 1 percent per month penalty, Rosatone said. Retiree Jim Uranker of Hanover Township, who pays a supplement for extra drug coverage under the existing US Airways plan as well as the health insurance cost for his under-65 wife, said, "It's the same pension, but now I have to turn around and buy insurance for myself and my wife. "It's just like the (steel) mills and everybody else," Uranker said. "They all run into (financial) problems, and that's what happens with all these bankruptcies." From usairways at vision.moundalexis.com Wed Nov 2 13:39:29 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 2 Nov 2005 08:39:29 -0500 (EST) Subject: [US Airways] US Airways offers passengers a way to catch earlier flights Message-ID: <20051102083841.S673-100000@vision.moundalexis.com> 2 November 2005 ; The Business Journal of Phoenix US Airways offers passengers a way to catch earlier flights http://phoenix.bizjournals.com/phoenix/stories/2005/10/31/daily13.html --- US Airways Tuesday announced an easier way for passengers to make confirmed changes for same-day travel, allowing customers to bypass the standby list for a small fee. To take advantage of the Move Up program, customers make a request upon airport check-in for an earlier flight and if space is available they get a confirmed seat. Cost for the service is $25 on domestic flights, excluding Hawaii, and $50 for international flights, excluding Europe. "Customer schedules don't always conform to airline schedules," said Travis Christ, vice president sales and marketing. "Our Move Up program allows customers to enjoy the peace of mind of a confirmed change on available flights for a very low price-- just another way we are keeping both business and leisure travel a customer-friendly process on US Airways." Tempe-based US Airways Group Inc. (NYSE: LCC) operates 4,000 flights per day and serves more than 225 communities in the United States, Canada, Europe, the Caribbean and Latin America. The airline is the result of the merger of US Airways and America West Airlines, a $1.5 billion transaction that was announced May 19 and closed Sept. 27. From usairways at vision.moundalexis.com Wed Nov 2 13:41:44 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 2 Nov 2005 08:41:44 -0500 (EST) Subject: [US Airways] US Airways union wants raise for workers Message-ID: <20051102084014.S673-100000@vision.moundalexis.com> 2 November 2005 ; Beaver County Times Allegheny Times US Airways union wants raise for workers http://www.timesonline.com/site/news.cfm?newsid=15494732 --- Karen Ferrick-Roman, Times Staff The union representing gate and reservation agents working for US Airways since its Sept. 27 merger with America West Airlines claims its members are due a raise from the new airline. Nonsense, the airline has responded. With that scenario, a battle is brewing over a "change of control clause" in the contract covering members of the Communications Workers of America, said Jim Drummond, president of the Pittsburgh CWA local. The clause could mean a pay raise of up to $5 an hour for CWA members and cost the company as much as $52 million, Drummond said. The union said the clause provides for workers' pay to be increased to the industry average rate as of June 2002. Because of concessions over the last several years, the top-paid employees are now earning $17 an hour. The pay in the CWA's original 1999 contract referred to $19.60 as the base point for the industry average, moving upward from there. Once the change of control clause would kick in, Drummond said, CWA workers would be returned to their original pay scales. "So you're looking at almost a $5 (an hour) increase in our salary," he said. That change could affect the 192 CWA employees based in Pittsburgh plus thousands nationwide, Drummond said. It would not have any impact on counterparts at America West Airlines, who are represented by the Teamsters, because the clause was particular to the CWA contract, Drummond said. The CWA waited until the mid-October, the first full pay period after the merger, to file a grievance, Drummond said. "The grievance lacks merit," US Airways spokeswoman Amy Kudwa wrote in an e-mail. "It will be handled internally through standard grievance procedures." "They kind of feel with the givebacks of the last concessions, that should cover that particular clause," Drummond said, adding that company officials had deemed the grievance "frivolous." "We definitely feel it's far from frivolous," Drummond said. Accelerated arbitration on the claim could produce a decision within a couple of months, Drummond said, though the grievance procedure can be lengthy. Typically, grievance procedures screech to a halt during a bankruptcy, he said, so the nearly back-to-back bankruptcies backed up US Airways grievances at least a year and a half. The union and company, he said, would split the cost of arbitration. From usairways at vision.moundalexis.com Thu Nov 3 03:00:40 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 2 Nov 2005 22:00:40 -0500 (EST) Subject: [US Airways] US Airways Third Quarter 2005 Financial Conference Call to Be Webcast Message-ID: <20051102215944.J673-100000@vision.moundalexis.com> 2 November 2005 ; PR Newswire US Airways Third Quarter 2005 Financial Conference Call to Be Webcast http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/11-02-2005/0004206338 --- EMPE, Ariz., Nov. 2 /PRNewswire-FirstCall/ -- US Airways Group (NYSE: LCC) will conduct a live audio webcast of its third quarter 2005 financial results conference call with the financial community on Wednesday, Nov. 9, 2005 at 11:00 a.m. EST (8:00 a.m. PST). The webcast will be available to the public on a listen-only basis at the company's Web site, http://www.usairways.com, and at http://www.americawest.com. An archive of the webcast will be available on the site through December 9. Listeners to the webcast will need a current version of Windows MediaPlayer software and at least a 28.8ps connection to the Internet. From usairways at vision.moundalexis.com Thu Nov 3 13:15:11 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 3 Nov 2005 08:15:11 -0500 (EST) Subject: [US Airways] Travel boom hits Pittsburgh airport after US Airways cutback Message-ID: <20051103081420.N673-100000@vision.moundalexis.com> 3 November 2005 ; Myrtle Beach Online Travel boom hits Pittsburgh airport after US Airways cutback http://www.myrtlebeachonline.com/mld/myrtlebeachonline/business/13068335.htm --- By Scott McCartney The Wall Street Journal Communities think of the loss of an airline hub as a doomsday scenario - less traffic and less prestige. But in Pittsburgh, the opposite happened this year: After US Airways pulled half its flights, local travel increased sharply. Since US Airways announced last fall that it would stop using Pittsburgh International Airport as a "hub," five discount airlines came rushing in and bigger legacy airlines beefed up service. Fares plunged: Prices for round-trip flights from Pittsburgh to Philadelphia, for example, fell to $186 from $680. So, people travel more. While the number of connecting customers is down sharply at Pittsburgh, the number of passengers beginning trips there was up 12 percent in September compared with last year, according to the airport's manager, the Allegheny County Airport Authority. Pittsburgh's experience shows the price many communities across the country pay for having an airline hub at their local airport. While these airports offer the convenience of hundreds of nonstop flights to scores of destinations, hubs also suppress local travel. That is because, until recently, low-cost competitors shied away from battling bigger network airlines at their dominant hubs. The lack of competition led to high ticket prices that stifled local travel. A 2001 U.S. Department of Transportation study of hubs found that on the whole, travelers in hub markets paid 41 percent more than travelers from competitive markets. Charlotte, Cincinnati, Minneapolis and Pittsburgh had the highest hub prices, the study found. In the past several years, things have begun to change. Discount carriers with strong balance sheets have made inroads at many hubs. In response, incumbent airlines began cutting business-travel fares. For example, Delta Air Lines cut fares at its Cincinnati hub, AMR Corp.'s American Airlines cut fares in Miami and US Airways moved to quickly match Southwest Airlines pricing in Philadelphia. Still, Bob Downey, who used to have the top frequent-flier status at US Airways, has switched loyalties. To fly to Pittsburgh two weeks ago, he happily drove two hours from his Albany, N.Y., home to catch a Southwest flight from Hartford - and save several hundred dollars. "US Airways was an option, but it was twice the fare," said Mr. Downey, who owns his own medical-supply business. One of the most drastic post-hub changes has been in the price of a Pittsburgh to Philadelphia flight. That route was priced at $680 round-trip when US Airways had a monopoly, encouraging many travelers to drive the five hours, instead. Then the price plunged to a maximum of $186 round-trip when Southwest began flying to Pittsburgh in May. Many more people now fly the route. To keep up with the demand, US Airways now has a dozen daily flights in each direction between the two cities, up from eight in January. Southwest has six daily flights each way. The same is true for the Pittsburgh to Washington, D.C., market. The average fare in the first quarter of 2004 was $634 round-trip, according to DOT data. But Independence Air began flying the route in August 2004, and by the first quarter of 2005, the average fare had fallen to $326 round-trip, and the number of passengers more than doubled, according to the DOT. In all, the average business-travel fare into and out of Pittsburgh was 19.1 percent lower in October than a year earlier, according to airfare-tracker Topaz International Ltd. "The benefits of a hub come at a very high price," said Kent George, executive director of the Allegheny County Airport Authority. "Now we have the good old American free-market system responding to demand." Lower fares - and the increased local traffic they have brought - have affected all parts of the airport. Car rentals are up 10 percent this year in Pittsburgh, the airport has had to add more parking, and Pittsburgh's massive airport mall has maintained 100 percent occupancy. Still, there have been hassles for both travelers and the community. Pittsburgh has lost nonstop flights to 50 different cities, mostly small markets, as US Airways dropped to about 200 flights a day from a peak of more than 400. The airport's total traffic, which peaked at more than 10 million passengers boarding planes in 1997, will only be about six million this year. And the retrenchment has meant massive job losses at the airport, as employment at the airport has fallen to 3,500 from 11,500, George said. To cope with the loss, the Pennsylvania Legislature pledged $150 million from gambling revenue over 10 years to pay for facilities such as gates that were abandoned by US Airways. Part of that will cover the $7 million annual cost of operating a baggage system that US Airways stopped paying for in its bankruptcy reorganization. The airport is finding it can run a lot more economically when it doesn't have to grapple with the inefficiencies of a hub - waves of planes coming in and leaving at the same time, followed by emptiness until the next wave. Instead of doing maintenance on runways in the middle of the night, for example, airport officials now close one of their four runways during the day and get work done cheaper. "Pittsburgh International Airport is going to survive without any problems," George said. Fears have eased that the airport's in-terminal shopping mall would collapse. Sales are down 10 percent from last year - not as bad as feared, according to Jay Kruisselbrink, vice president at BAA Pittsburgh Inc., the mall's developer and manager. One saving grace for the mall is that passengers who begin and end trips in Pittsburgh actually shop longer and spend more than people rushing to make connections. The average sale has climbed to $12.05 from $8.30, George says. From usairways at vision.moundalexis.com Fri Nov 4 13:25:41 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 4 Nov 2005 08:25:41 -0500 (EST) Subject: [US Airways] Fed up with US Airways customer service? 6NEWS investigates Message-ID: <20051104082159.G673-100000@vision.moundalexis.com> 3 November 2005 ; 6NEWS Fed up with US Airways customer service? 6NEWS investigates http://www.wcnc.com/news/local/stories/wcnc-110305-al-us_air.24a7a98a.html --- By JEFF SONIER / 6NEWS The flights say US Airways. The tickets say US Airways. But when you call US Airways on the phone chances are you won't get the US at all. "There're horrible stories out there about people who've had problems," said union leader Becky Gerald. She said what makes her mad isn't just the bad customer service, but also the 500-plus jobs at a US Airways call center in Winston-Salem that the airline instead sent overseas. Gerald said the call center now is empty. "It's sort of like a ghost town," she said. US Airways would not allow 6NEWS in the Winston-Salem call center to ask about their customer service problems. "I'm sorry, this is private property. I'm going to have to ask you to leave," a security guard said. So 6NEWS phoned US Airways' 1-800 number and the call lasted more than an hour. The question we had was pretty simple: If we buy a flight to Orlando at one price and the price drops, can we get a refund or a credit for the difference? "Would you kindly hold on sir so I could be talking to the proper person to give you the proper info? Would that be okay?" an operator said. 6NEWS talked to two different Philippine operators who put us on hold six times, for almost 40 minutes. "It's very, very complicated. Rules, regulations, fares... but there's a language barrier. There is a lack of knowledge. There are training issues. And passengers that call in... will just -- pffft -- we're going to the airport to get this fixed," Gerald said. At the airport the lines are long, but at least at the end of those lines, there is usually an agent with an answer. Meanwhile, on the phone line, every 30 seconds we heard "please wait.. And when the answer finally came, "$208 plus airport fees," the operator said. And guess where that answer came from? Nope, not the Philippines, but from the call center back in Winston-Salem. "That's my coordinator," the operator said. "That is my supervisor on the other line. He's in North Carolina." From usairways at vision.moundalexis.com Sat Nov 5 13:31:42 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 5 Nov 2005 08:31:42 -0500 (EST) Subject: [US Airways] US Airways Group Traffic Down in October Message-ID: <20051105083050.S673-100000@vision.moundalexis.com> 4 November 2005 ; MSN Money (AP) US Airways Group Traffic Down in October http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=AP&Date=20051104&ID=5255163 --- TEMPE, Ariz. (AP) - US Airways Group Inc. on Friday said October traffic slid 8.2 percent, led by a sharp drop at US Airways and a more modest decline at America West. Companywide, revenue passenger miles fell to 5.2 billion from 5.7 billion. A revenue passenger mile equals one paying passenger flown one mile. Meanwhile, available seat miles, or capacity, slipped 6.4 percent to 6.9 billion. Load factor, or the number of passengers carried as a portion of available seats, fell to 74.9 percent from 76.4 percent. October traffic slipped 2.9 percent at America West, coupled with a 13.3 percent drop in traffic at US Airways. The company's smaller carrier, US Airways Express, posted a 17.7 percent increase in traffic during the month. Capacity dipped 0.3 percent at America West and plummeted 12.3 percent at US Airways, offset by a 22.3 percent at US Airways Express. US Airways, which completed its merger with America West in September, is now the fifth largest airline in the U.S. Shares of US Airways Group rose 63 cents, or 2.3 percent, to $28.50 in afternoon trading on the New York Stock Exchange. From usairways at vision.moundalexis.com Sun Nov 6 15:46:46 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 6 Nov 2005 10:46:46 -0500 (EST) Subject: [US Airways] US Airways operations chief makes himself at home here Message-ID: <20051106104539.Y673-100000@vision.moundalexis.com> 6 November 2005 ; The Arizona Republic US Airways operations chief makes himself at home here http://www.azcentral.com/arizonarepublic/business/articles/1106crellin06.html --- Dawn Gilbertson Face and head coated in bright blue paint, orange wands in his hands, Al Crellin looked like one of the gang as he and other US Airways executives toured the company's operations as Blue Man Group on Halloween. He fit right in, dancing when they danced and handing out candy to employees and passengers on a daylong adventure away from the office. Unless you visit his bare office or ask him for directions, you never would know Crellin is the new guy in the Tempe airline's executive suite. He's been in Arizona barely a month, transferring from the old US Airways headquarters in Arlington, Va., after the America West-US Airways merger closed in September. Crellin, executive vice president of operations, is the only high-level executive from the old US Airways in the upper ranks of the combined airline's management team. He is one of just three executive vice presidents who report to US Airways CEO Doug Parker. Most of the top US Airways executives moved on to other airlines or retired. Crellin, 58, thought about doing the same, but decided to uproot from the East Coast after 16 years because he was impressed by America West's management team and felt he could play a key role in helping make the merger a success. He's been through several in his 34-year career with US Airways and its predecessor companies. "In the airline business, when you do mergers there is, a lot of times, a lack of understanding on both sides about how best to put cultures together and people together . . . and how all that works," he said. "I think had I opted to leave some of that mix might have come out differently." Bill Pollock, head of the pilots union for the old US Airways, said the East Coast operations are much larger and more complex than America West's Phoenix and Las Vegas hubs. The airline has some major challenges in congested Philadelphia, for example. "I think they're drawing on his experience," he said. Not without critics Crellin's appointment didn't draw unanimous raves. He's been criticized on aviation message boards on the Internet, with some employees saying they were shocked he got the job. Some pilots were lobbying for another US Airways official. Critics blame Crellin for the airline's operational woes, including last Christmas' baggage meltdown and resulting public-relations nightmare in Philadelphia. They say Crellin was never held accountable for the airline being short-staffed during the holidays. "He's the guy that is the fall guy for the things that don't go right," Pollock said. Crellin says that he's responsible as the head of operations for any problems related to how the airline runs. That doesn't mean, he says, that he caused them. "I think what happened last December was really a culmination of a lot of things," he said. The airline was in its second bankruptcy, workers were going through more wage and benefit cuts and the weather was bad, among other factors, he said. "It was a very difficult period of time for us," he said. And in tough times, he said, "I think my popularity probably drops." Crellin doesn't rank the baggage meltdown as a low point in his career. That title is reserved for the seven airline crashes he's worked during his long career. US Airways had five. The former PSA, where he started, suffered two. Among the high points: "I've gone through a number of regime changes and survived them all," he said with a laugh. Started at bottom Crellin, who grew up in El Segundo, Calif., started in the industry in his 20s after short stints as a Marine and as a police officer in Los Angeles. He started at the bottom, loading baggage on the ramp for PSA. His other frontline jobs included fueler and ticket agent. He started in management in 1975 and worked his way to the upper echelons. "The fact that I've done most of those things, I have a very strong appreciation for what everyone does here," he said. "I think that it allows me to be able to relate to folks better." The soft-spoken executive, who has two grown sons working for other airlines, is still getting to know America West's operations. He jokes that he's still finding his way to the restroom at the airline's Tempe headquarters. He has bought a home in Gilbert, but it, too, is bare. He has found the gym and lifts weights every day before work. Family back East Crellin says he has mixed emotions about leaving the East Coast. His sons live there, and his wife still spends a lot of time there. At the same time, they have good friends in Arizona. Last year, before the merger was on the radar, the avid golfer looked at buying a vacation home in Anthem. Crellin is not involved in the community yet but is impressed by the former America West's commitment to causes. "We did less of that back East," he said. "The difference is night and day at how much more involved America West and Doug and his team have had in the community. I'm very much a proponent of that." Crellin's top priority is making sure the new US Airways' operations don't slip as the airlines go about the gargantuan task of truly combining everything from flight crews to computer systems. Some things are happening right away, others are a year or two off as the airlines seek a single operating certificate from the Federal Aviation Administration. Both airlines have had their share of on-time woes and customer complaints in the past 18 months, but recent numbers show improvements, especially at America West. "What I'd like to be able to do," Crellin said, "is put the airline together and have all the employees be OK and their families be OK and have our airline be successful, and I can leave our industry and feel it was a nice cap for my career." From usairways at vision.moundalexis.com Tue Nov 8 13:15:17 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 8 Nov 2005 08:15:17 -0500 (EST) Subject: [US Airways] US Airways names new executives Message-ID: <20051108081439.M673-100000@vision.moundalexis.com> 7 November 2005 ; Charlotte Business Journal US Airways names new executives http://charlotte.bizjournals.com/charlotte/stories/2005/11/07/daily1.html --- US Airways Group Inc. has named Elise Eberwein senior vice president of corporate communications. Eberwein, 40, is responsible for the airline's media relations, employee communications and investor relations, as well as customer relations. The airline also appointed Paul Morell to the position of vice president of safety and regulatory compliance. Morell, 59, will be the carrier's Federal Aviation Administration-mandated director of safety to ensure that required safety programs have been established and maintained throughout the airline. "We continue to develop a strong leadership team for the new US Airways," says Doug Parker, chief executive. "Both of these executives bring not only technical expertise to their respective areas of responsibility, but also leadership skills that are critical to a service business like ours." Eberwein joined America West Group Holdings Corp. in 2003 as vice president, corporate communications. Morell is a 37-year aviation veteran, previously serving as US Airways' director of flight training and standards. He was also fleet captain for the US Airways' Airbus A330, Boeing 757 and Boeing 767 fleets, overseeing pilot training and operational policies and procedures. The newly consolidated US Airways (NYSE:LCC) was created in the recent $1.5 billion merger of the former Virginia-based US Airways and America West of Arizona. The combined carrier, which took the US Airways name, is based in Tempe, Ariz. US Airways operates one of its largest hubs at Charlotte/Douglas International Airport. From usairways at vision.moundalexis.com Tue Nov 8 13:16:08 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 8 Nov 2005 08:16:08 -0500 (EST) Subject: [US Airways] Two US Airways executives given new responsibilities Message-ID: <20051108081530.P673-100000@vision.moundalexis.com> 7 November 2005 ; The Business Journal of Phoenix Two US Airways executives given new responsibilities http://phoenix.bizjournals.com/phoenix/stories/2005/11/07/daily3.html --- US Airways Group Inc. Monday announced a pair of management changes. Elise Eberwein now is senior vice president, corporate communications. In this new position, Eberwein, 40, retains responsibility for the airline's media relations, employee communications and investor relations, and assumes new responsibilities for customer relations and cultural integration. The airline also appointed Capt. Paul Morell to the position of vice president, safety and regulatory compliance. In his new position, Morell, 59, will serve as the airline's Federal Aviation Administration-mandated director of safety to ensure that required safety program elements have been established, implemented, and maintained throughout the airline. Eberwein joined America West in 2003 as vice president, corporate communications. Prior to that, she was vice president, communications for Denver-based Frontier Airlines. She began her career as a flight attendant, and holds an MBA from Colorado State University and a BA in mass communications from Lindenwood College. Morell is a 37-year aviation veteran, previously serving as US Airways' director, flight training and standards. He was also fleet captain for the US Airways' Airbus A330, Boeing 757 and Boeing 767 fleets, overseeing pilot training and operational policies and procedures. Prior to joining US Airways, Morell was a U.S. Navy aviation safety officer. Morell holds an MBA from National University in San Diego and a bachelor's degree in civil engineering from the Illinois Institute of Technology. The merger of US Airways and America West Airlines to create Tempe-based US Airways (NYSE: LCC) was a $1.5 billion transaction that was first announced May 19 and closed Sept. 27. In its new structure, US Airways is the fifth-largest domestic airline, employing nearly 36,000 people. US Airways, US Airways Shuttle and US Airways Express operate about 4,000 flights per day and serve more than 225 communities in the United States, Canada, Europe, the Caribbean and Latin America. From usairways at vision.moundalexis.com Wed Nov 9 03:19:54 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 8 Nov 2005 22:19:54 -0500 (EST) Subject: [US Airways] Earnings Preview: US Airways Group Message-ID: <20051108221922.N673-100000@vision.moundalexis.com> 8 November 2005 ; MSN Money (AP) Earnings Preview: US Airways Group http://moneycentral.msn.com/inc/news/providerredir.asp?feed=AP&Date=20051108&ID=5264288 --- EW YORK (AP) - US Airways Group Inc. is scheduled to report third-quarter results on Wednesday, Nov. 9. The following is a summary of key developments and analyst opinion related to the period. EXPECTATIONS: In a Thomson Financial poll, Wall Street analysts are predicting quarterly losses of $1.85 on $2.25 billion in sales. ANALYST TAKE: After its acquisition by America West Holdings Corp., the company -- which retained the US Airways name -- raised $330 million in proceeds from debt and equity offers and "moved quickly to use some of that cash to clean up its balance sheet," said Merrill Lynch analyst Michael J. Linenberg. He said the combined company is "off to a good start" with September revenue gains of 10 percent at both carriers. QUARTER DEVELOPMENTS: The Tempe, Ariz.-based company final approval Sept. 16 to exit bankruptcy protection for the second time in three years and be acquired by America West. The companies combined on Sept. 27. US Airways said traffic in October -- the first full month for the merged company -- fell 8.2 percent at its US Airways, US Airways Express and America West airlines. COMPETITORS: Delta Air Lines Inc. and Northwest Airlines Corp. filed for bankruptcy in mid-September. American Airlines parent company AMR Corp. reported a slimmer quarterly loss as cost cuts helped counter soaring fuel prices, but the results lagged analysts' forecasts. Meanwhile, Continental Airlines Inc. posted a healthy and higher-than-expected quarterly profit, lifted in part by lower labor costs. STOCK PERFORMANCE: Since exiting bankruptcy in September, the stock has traded between $20.10 and $29. From usairways at vision.moundalexis.com Wed Nov 9 03:22:47 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 8 Nov 2005 22:22:47 -0500 (EST) Subject: [US Airways] Manager plugs Cimarex Energy, US Airways Message-ID: <20051108222101.M673-100000@vision.moundalexis.com> 8 November 2005 ; MSN Money Manager plugs Cimarex Energy, US Airways http://moneycentral.msn.com/content/CNBCTV/Articles/StockPicks/P135382.asp --- [Morning Call] Ric Dillon is focused on the long term, which he defines as five years. [Table of Stocks] Emotion swings markets in the short term. Investors with a longer view will base their calculations on a different set of factors, said Ric Dillon. Dillon, president of Columbus, Ohio-based Diamond Hill Investment Group, trades infrequently. He looks for companies he thinks he'd still want to own in five years, he said Tuesday on CNBC's "Morning Call." His strategy is working. The Diamond Hill Small Cap Fund (DHSCX) he helps manage is up about 10% year to date and up 29% on an annualized basis over the past three years. The Diamond Hill Focus Long-Short Fund (DIAMX) is up nearly 16% this year and 9.8% on an annualized basis over five years. Dillon recommended the following stocks, which he owns in funds his company manages. Get additional details below, and use the CNBC.com on MSN tools, including StockScouter, to learn more about each company. And keep up with the Street with the latest Market Dispatch. Quick Analysis Cimarex Energy Co. . It's an oil and gas exploration and development company, based in Denver. Its activities are focused primarily on western Oklahoma, Kansas and the upper Gulf Coast areas of Texas and Louisiana. . The company doubled in size earlier this year when it acquired Magnum Hunter Resources for $2.1 billion. "It's grown through acquisitions, as well as through organic growth," said Dillon, who has owned the stock since the company's 2002 spinoff from contract driller Helmerich & Payne and that unit's acquisition of Key Production. . Natural gas accounts for roughly two-thirds of its production, Dillon said, and crude oil accounts for the rest. . Third-quarter net income surged about 60% on sharply higher oil and gas prices and increased production. . Fulcrum Global Partners lowered its earnings estimates for Cimarex in the year's second half following Hurricanes Katrina and Rita, which caused a temporarily 7% reduction in production. Fulcrum maintained its "neutral" rating on the stock. . "Sentiment has been negative toward the stock since its acquisition of Magnum Hunter, which complicated the company's asset mix by adding generally out-of-favor assets in the Gulf of Mexico," wrote Fulcrum analysts Duane Grubert and Daniel Boyd on Oct. 21. . But the Magnum Hunter deal was cited as a factor in Standard & Poor's analyst Richard Tortoriello reiteration of his "strong buy" recommendation on Cimarex shares on Nov. 3. "We are impressed by (the company's) strong execution on its drilling program, in particular on Magnum Hunter properties," Tortoriello wrote. "We expect production volume to rise 10% in 2006." . According to Zacks, the average brokerage recommendation on Cimarex Energy is hold. . Cimarex Energy on Nov. 8 was rated 8 out of 10 on StockScouter. US Airways Group, Inc. . The company was formed in September via the merger of the former US Airways Group, which was operating under Chapter 11 bankruptcy protection, with America West Holdings. . The Tempe, Ariz., company operates the nation's fifth-biggest airline. It has 4,000 flights a day to 225 cities in North America, the Caribbean, Latin America and Europe. It has primary hubs in Charlotte, Philadelphia and Phoenix. It maintains secondary hubs in Boston, Washington, D.C, New York, Pittsburgh and Las Vegas. . The former US Airways used bankruptcy protection to achieve $2 billion in annual cost savings through labor, benefit and pension cost reductions. . "It's the America West management team that's leading the new company," Dillon said. "As a result of the exit from bankruptcy, they have streamlined operations. They're the lowest-cost carrier of the national and international carriers. They're still not as low-cost of a carrier as Southwest, but they're lower than all of the majors. That advantage should bode well (for the company), as well as -- and probably more importantly -- the change in the industry fundamentals." . J.P. Morgan upped its rating on the stock to "overweight" from "neutral" on Oct. 6, citing reduced domestic capacity. "We consider US Airways uniquely well positioned to take advantage of declining domestic capacity, particularly along the East Coast," analyst Jamie Baker wrote in a research report. . According to Zacks, the average brokerage recommendation for U.S. Airways Group is hold. American Greetings Corporation . It's one of the nation's biggest makers of greeting cards. Its products are sold in 125,000 retail outlets worldwide. It owns and operates more than 580 stores in North America. . Greeting cards make up more than half of sales, but the company also sells gift wrap, party goods, calendars, candles, balloons and stationery. . It has an 83% ownership of AG Interactive, which markets e-mail greetings and personalized printable greeting cards through its Web sites. It also offers design and verse content through CD-ROM software that people can use on their PCs. . "American Greetings has been in a mode of paying down debt and repurchasing shares with the large amount of cash flows that they generate," Dillon said. "As a result of that, they're enhancing shareholder value." . According to Zacks, the average brokerage recommendation for American Greetings is hold. . American Greetings on Nov. 8 was rated 7 out of 10 on StockScouter. From usairways at vision.moundalexis.com Thu Nov 10 00:00:09 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 9 Nov 2005 19:00:09 -0500 (EST) Subject: [US Airways] 4 top US Airways executives get pay raises Message-ID: <20051109185911.O673-100000@vision.moundalexis.com> 9 November 2005 ; Charlotte Observer 4 top US Airways executives get pay raises http://www.charlotte.com/mld/charlotte/business/13118280.htm --- AIRLINES US Airways' board of directors approved raises for four top executives, the airline said in a securities filing Tuesday. Chief Executive Doug Parker's base salary will remain at $550,000, the airline said. It set other base pay as follows: + Executive Vice President Jeffrey McClelland will make $425,000, up from the $400,000 he made in 2004. + Executive Vice President Scott Kirby will make $425,000, up from $380,000 last year. + Chief Financial Officer Derek Kerr will make $300,000, up from $262,000 last year. + Executive Vice President Al Crellin will make $400,000, up from $347,000 last year. The board also adopted a bonus plan that pegs executive bonuses to the company's stock performance, measured against stock performance of 13 competing airlines. The filing said the board set the new salaries after reviewing executive compensation at other airlines. -- Tony Mecia From usairways at vision.moundalexis.com Thu Nov 10 00:00:49 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 9 Nov 2005 19:00:49 -0500 (EST) Subject: [US Airways] US Airways CEO salary set at $550,000, plus bonus Message-ID: <20051109190009.O673-100000@vision.moundalexis.com> 6 November 2005 ; Pittsburgh Tribune-Review US Airways CEO salary set at $550,000, plus bonus http://www.pittsburghlive.com/x/tribune-review/business/briefs/s_392538.html --- By staff and wire reports US Airways Group directors set the annual base salary for Chairman and Chief Executive Doug Parker at $550,000, according to a securities filing Tuesday. The CEO is also eligible for a performance bonus of as much as $1.1 million, or double the base pay. Executive Vice President of Sales and Marketing J. Scott Kirby, and EVP and Chief Administrative Officer Jeffrey McClelland each will receive $425,000 in base pay, plus as much as $743,750 in performance bonuses. EVP of Operations Alan Crellin will receive a base pay of $400,000, plus up to $700,000 in performance bonuses. Rounding out the five-highest-paid is Chief Financial Officer Derek Kerr, who will get $300,000 in base pay, plus up to $420,000 in performance bonuses. Vice Chairman Bruce Lakefield was not among the highest-paid listed. As CEO of the pre-merged US Airways, Lakefield received $286,058 in base salary during his eight months as chief executive last year. From usairways at vision.moundalexis.com Thu Nov 10 00:01:36 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 9 Nov 2005 19:01:36 -0500 (EST) Subject: [US Airways] US Airways' new ride is a bit turbulent Message-ID: <20051109190051.N673-100000@vision.moundalexis.com> 9 November 2005 ; USA Today US Airways' new ride is a bit turbulent http://www.usatoday.com/travel/news/2005-11-09-usair-sofar_x.htm --- By Dawn Gilbertson, The Arizona Republic Six weeks into their merger, America West and US Airways report no major service snafus and say things have gone better than they expected on many fronts. That doesn't mean the airlines' frequent fliers are rejoicing. What's minor to the nation's fifth-largest airline can be major to passengers who traverse the country by plane every week on business. The biggest headaches they cite so far: difficulty booking flights and checking in online, encounters with confused and sometimes tense employees, harder-to-get first-class upgrades and airfares that don't live up to the new US Airways' pitch as the country's first nationwide low-fare, low-cost airline. "They're definitely testing my patience," said Steve Nickerson, a Scottsdale-based sales executive for a major health care company. Nickerson, who travels twice a week, exclusively on the former America West, said he feels like he's on "crazy pills" since the merger. Customer service for top frequent fliers has suffered, with reservations mistakes and rude customer service on some occasions, he said, and the airline is rigidly enforcing change fees and other policies that were more flexible in the past, at least for the upper tier of frequent fliers. Nickerson considers himself low maintenance but says he is extremely frustrated with his experiences since the deal closed Sept. 27. Even if half the problems he encountered were his doing, the service trend is troubling, he said. Earlier this week, he was so fed up that he flew Alaska Airlines home from Seattle. "I'm just going to spread out my business until they get their act together," he said. Brian Gagan, a partner in Scottsdale-based consulting firm Leadership Strategies, said he was so frustrated with the lack of low fares on US Airways out of Phoenix that his company booked $47,000 worth of travel on other carriers last week. They included Southwest, American, Continental and British Airways. No trouble for some Passengers' experiences run the gamut, of course, and plenty of America West and US Airways frequent fliers report no merger troubles and love the expanded route map and the extra frequent flier miles and awards they bring. Larry Seal, a leadership and communications coach who travels 40 to 45 weeks a year and is in the top level of the new airline's frequent flier program, has no complaints. "Everything's been pretty smooth," the president of Phoenix-based Engaged Communication said. "If anything, I think maybe the service has picked up a little bit because everybody feels on the spot." The only significant change he's noticed is more competition for first-class upgrades since there's a bigger pool of frequent fliers in the combined airline's program. Seal says he does sense tension over the merger among in-flight employees. He hopes brewing labor battles over seniority don't spill over into customer service. "That's exactly what happened in the bad old days with (former CEO Bill) Franke," Seal said. "The service was just abysmal." Service report due soon The first official customer service measures of the new US Airways, on everything from on-time arrivals to customer complaints, won't be out for a month when the government releases its Air Travel Consumer Report for October. Kirby and other US Airways executives said there have been glitches but the overall picture of the merger's early days is positive. The officials are likely to be asked for an update on operations during the airline's third-quarter earnings conference call today. "The level of dust has been less than we thought it would be," said Kirby, referring to the airline's Pardon Our Dust merger customer service campaign. "That doesn't mean we've all been perfect. We've done better than expected." Execs see 'hiccups' Jeff McClelland, who oversaw America West's operations for years before the merger and now heads up other areas for the combined company, said, "Are there hiccups? Yeah. There's going to be hiccups." The executives said the airlines are still not completely consistent in being able to handle each others' passengers, for various reasons, and technology glitches led to flights being priced differently on each airline's website. The upgrade system for frequent fliers was troublesome in the beginning. Then there's the inevitable passenger confusion over where to check in. Kirby said US Airways is eager to get to one brand name to alleviate some of the confusion. The corporate name changed to US Airways the day of the merger, but you still hear America West when you fly on US Airways flights operated by the old America West and when you go online or call reservations. On many America West flights, the name US Airways never comes up. Old systems remain Part of the problem is a function of different reservation systems and will linger for another year or so, Kirby said. But he said the airline's goal is to have a single brand name for most things by the beginning of the year. On the fare front, Kirby said there are some markets, especially smaller ones served by the original US Airways on the East Coast, where fares will not plunge. Demand is not strong and the airline serves many of the routes with smaller planes, which bring higher costs. He likened it to fares between Phoenix and Yuma. The high fares, running more than $1,000 roundtrip in many cases, are a hot topic on forums at Flyertalk.com. Tempe frequent flier Thomas Flynn, who inspects commercial properties around the country for a large insurance company, says he will avoid US Airways flights in that region because "they aren't cheap." "I'll look for other airlines," he said. From usairways at vision.moundalexis.com Thu Nov 10 00:02:35 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 9 Nov 2005 19:02:35 -0500 (EST) Subject: [US Airways] US Airways posts $87 million 3Q loss Message-ID: <20051109190143.D673-100000@vision.moundalexis.com> 9 November 2005 ; Triangle Business Journal US Airways posts $87 million 3Q loss http://triangle.bizjournals.com/triangle/stories/2005/11/07/daily18.html --- US Airways Group Inc. reported a third-quarter net loss of $87 million, or $5.04 per diluted share. That compares with a net loss of $47.1 million, or $1.30 per share, by predecessor America West Holdings Corp. and a net loss of $232 million, or $4.22 per diluted share, by the former US Airways in the year-ago period. The airlines recently completed a $1.5 billion merger, with the consolidated carrier taking the US Airways name. The combined airline is based in Tempe, Ariz. The pre-merger US Airways was headquartered in Arlington, Va. In reporting its third-quarter results, the airline said its net loss of a year ago amounted to $29 million, or $1.92 per diluted share, excluding fuel-hedging costs. But those figures pertain solely to America West operations. For accounting purposes, the airline considers the US Airways deal an acquisition. Also for accounting reasons, this year's third-quarter financial figures comprise 88 days of America West results and four days of the consolidated airline's operations. The combined carrier (NYSE:LCC), which is the third busiest at Raleigh-Durham International Airport, said its results for the latest quarter include special charges related primarily to the merger. Excluding special items, the carrier reports a third-quarter net loss of $23 million, or $1.33 per diluted share, compared with an America West net loss excluding special items of $46 million, or $3.06 per diluted share, in the third quarter of 2004. Revenue for the combined carrier increased 36.4 percent to $926 million from America West's $679 million in the year-ago period. The airline's operating loss rose to $71 million from $10 million. "The biggest news from our third-quarter 2005 was the completion of the US Airways/America West merger, and obviously our third-quarter results do not yet include any of the expected positive effects from that merger," CEO Doug Parker said. "Like all airlines, we continue to face record high fuel prices, but we were very pleased with our unit revenue performance in the quarter." As of Oct. 31, the combined carrier's total cash and investments were $2.6 billion, of which $1.7 billion was unrestricted. From usairways at vision.moundalexis.com Thu Nov 10 00:03:26 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 9 Nov 2005 19:03:26 -0500 (EST) Subject: [US Airways] U.S. Airways Third-Quarter Deficit Grows Message-ID: <20051109190235.L673-100000@vision.moundalexis.com> 9 November 2005 ; Porterville Recorder (AP) U.S. Airways Third-Quarter Deficit Grows http://www.portervillerecorder.com/articles/2005/11/09/ap/business/d8dp0vi02.txt --- TEMPE, Ariz. - U.S. Airways Group Inc., which combined with America West Holdings Corp. in September, on Wednesday posted a sharply wider third-quarter loss as merger-related expenses and fuel costs weighed on its bottom line. The company's loss grew to $87 million, or $5.04 per share, from $29 million, or $1.92 per share, last year. Excluding special items, the loss would have been $23 million, or $1.33 per share. On average, analysts surveyed by Thomson Financial were expecting a quarterly deficit of $1.85 per share. Operating revenue totaled $926 million, a 36 percent increase from $679 million a year earlier. Traffic increased 7.9 percent to 6.72 billion revenue passenger miles _ one customer flown a mile _ with capacity expanding by 9.9 percent. Occupancy of the carrier's planes fell, however, to 79.9 percent from 81.4 percent a year ago. Operating costs rose roughly 45 percent, driven by merger expenses and a sharp increase in fuel costs. At America West Airlines, the loss widened to $71 million from $28 million last quarter, while revenue advanced 25 percent to $846 million. America West's quarterly traffic grew 1.7 percent to 6.33 billion revenue passenger miles as capacity rose 3 percent, but occupancy declined 1 percentage point to 80.4 percent. U.S. Airways shares rose 26 cents to $29.69 in morning trading on the New York Stock Exchange. From usairways at vision.moundalexis.com Thu Nov 10 00:06:55 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 9 Nov 2005 19:06:55 -0500 (EST) Subject: [US Airways] Two airlines forge one US Airways Message-ID: <20051109190327.Y673-100000@vision.moundalexis.com> 9 November 2005 ; MarketWatch Two airlines forge one US Airways http://www.marketwatch.com/news/story.asp?guid={9F8B6541-7A11-4734-A2B8-C9FAF917ECF8} --- By August Cole, MarketWatch Last Update: 4:32 PM ET Nov. 9, 2005 SAN FRANCISCO (MarketWatch) -- From the Tempe, Ariz., headquarters of what's now known as US Airways Group, the top executives are running a company that day by day is combining the operations of America West and US Airways. But a crucial milestone for the merger is more than a year off, and it will be reached well out of travelers' sight. It won't be until early 2007, executives said during a conference call Wednesday after the company's third-quarter results, that the company will be truly unified with just one reservations system. That system is to be based on technology used by America West. US Airways (LCC) which was based in Virginia until America West swooped in to take over the bankrupt company, is the much older brand, so it will live on while America West's will disappear. Planes flying in the new livery already are in the air, and early next year flights will be announced on board as US Airways, not America West. "By the first quarter of next year, we plan to roll out completely new branding and to eliminate the America West name and move to US Airways," said US Airways sales and marketing executive Scott Kirby said during a conference call with analysts. A single Web site is expected by April 2006. For now, passengers must book on either carrier's own Web page, though frequent-flier miles can be used at either airline. The point of all this is savings, and US Airways' top executive Doug Parker said Wednesday that the company is confident it can garner some $600 million in cost cuts and revenue. Changes to the company's insurance rates, for example, are another change that the carrier said will save it more money. Beyond the back office, getting down to one Federal Aviation Administration operating certificate for the two airlines is another essential change -- a process that will take about two years. Perhaps the biggest challenge, executives signaled during the call, will be the melding of two unionized workforces that have different seniority ranks. Establishing the pecking order for pilots, for example, is going to be very tricky. See Full Story [1] So far, the combination is paying off. The company should earn money next year, when one-time items related to the merger are excluded, executives said. See full story. [2] On Wednesday, shares hit their highest level since US Airways Group stock began trading on the New York Stock Exchange in September. Shares stood out in the airline sector with a 6.4% advance to $31.30 - a high for the new company's stock since it began trading in late September. August Cole is an editor for MarketWatch in San Francisco. [1] http://www.marketwatch.com/news/story.asp?guid={941AC34B%2D5522%2D497C%2DB4C4%2D3022B3383FE7} [2] http://www.marketwatch.com/news/story.asp?guid={2E94D78D%2DF759%2D42D5%2DAB62%2D414F1824334D} From usairways at vision.moundalexis.com Thu Nov 10 00:07:38 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 9 Nov 2005 19:07:38 -0500 (EST) Subject: [US Airways] US Airways outsources cargo management Message-ID: <20051109190656.B673-100000@vision.moundalexis.com> 9 November 2005 ; Pittsburgh Business Times US Airways outsources cargo management http://pittsburgh.bizjournals.com/pittsburgh/stories/2005/11/07/daily22.html --- US Airways Group Inc. is outsourcing its unit-load device management in a sale and leaseback deal with Jettainer GmbH of Germany. As part of its cost-savings initiatives, US Airways has transferred administration of its entire fleet of air cargo and passenger flight containers and pallets to Jettainer. The German company will manage the airline's unit-load management operations for a monthly fee that covers order management, repair and maintenance, tracking and tracing, account management and other services. Jettainer says the deal is expected to save US Airways nearly $2 million over the life of the five-year contract. Financial terms weren't disclosed. "After an exhaustive review of all of the ULD management solutions available, we found Jettainer to offer the right mix of technology and services to support our operations," says Randy Richards, US Airways vice president of cargo sales and service. "This outsourcing relationship with Jettainer, along with having ULD tracking technology in place for enhanced visibility and operational control, positions us for further efficiency and cost savings in our cargo operations." Jettainer is a joint venture of the international airfreight carrier Lufthansa Cargo AG and mobile asset-management specialist TrenStar Inc. of Colorado. US Airways completed a $1.5 billion merger with Arizona-based America West Group Holdings Corp. in September, with the consolidated carrier taking the US Airways name. The combined airline (NYSE:LCC) is based in Tempe, Ariz. The pre-merger US Airways was headquartered in Arlington, Va. From usairways at vision.moundalexis.com Thu Nov 10 00:08:19 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 9 Nov 2005 19:08:19 -0500 (EST) Subject: [US Airways] US Airways expands efforts to help service members Message-ID: <20051109190738.P673-100000@vision.moundalexis.com> 9 November 2005 ; The Business Journal of Phoenix US Airways expands efforts to help service members http://phoenix.bizjournals.com/phoenix/stories/2005/11/07/daily37.html --- US Airways Group Inc. is honoring United States veterans this year by expanding its Veteran's Day traditions to include frequent flier mileage donations that benefit America's service men and women. This year, US Airways will match mileage donations to the Fisher House Foundation through the airline's Miles of Hope program. Fisher House provides support to families of service men and women who are receiving medical care as a result of Operation Iraqi Freedom and Operation Enduring Freedom. Donated miles are used to reunite families by providing airline tickets to wounded heroes for leave from a hospital or for their families to visit them. >From Nov. 11 through Dec. 11, all miles donated to Fisher House by the airline's frequent flyers will be matched by the airline up to 11,112,005 miles (selected to recognize Veteran's Day, 11/11/2005). The airline is also serving as the title sponsor of the Phoenix Veterans Day Luncheon (Thursday) and Parade (Friday). The parade begins at 11 a.m. and takes place in downtown Phoenix. Tempe-based US Airways (NYSE: LCC) was formed by the merger of US Airways and America West Airlines, a $1.5 billion transaction that was announced May 19 and closed Sept. 27. US Airways, US Airways Shuttle and US Airways Express operate approximately 4,000 flights per day and serve more than 225 communities in the United States, Canada, Europe, the Caribbean and Latin America. From usairways at vision.moundalexis.com Thu Nov 10 00:09:28 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 9 Nov 2005 19:09:28 -0500 (EST) Subject: [US Airways] US Airways loses $87M in 3Q Message-ID: <20051109190820.M673-100000@vision.moundalexis.com> 9 November 2005 ; Washington Business Journal US Airways loses $87M in 3Q http://washington.bizjournals.com/washington/stories/2005/11/07/daily30.html --- US Airways Group reported a third-quarter net loss of $87 million, or $5.04 per diluted share. That compares with a net loss of $47.1 million, or $1.30 per share, by predecessor America West Holdings and a net loss of $232 million, or $4.22 per diluted share, by the former US Airways in the year-ago period. The airlines recently completed a $1.5 billion merger, with the consolidated carrier taking the US Airways name. The combined airline is based in Tempe, Ariz. The pre-merger US Airways was headquartered in Arlington. In reporting its third-quarter results, the airline said its net loss of a year ago amounted to $29 million, or $1.92 per diluted share, excluding fuel-hedging costs. But those figures pertain solely to America West operations. For accounting purposes, the airline considers the US Airways deal an acquisition. Also for accounting reasons, this year's third-quarter financial figures comprise 88 days of America West results and four days of the consolidated airline's operations. The combined carrier (NYSE:LCC), which operates one of its largest hubs at Charlotte/Douglas International Airport, says its results for the latest quarter include special charges related primarily to the merger. Excluding special items, the carrier reports a third-quarter net loss of $23 million, or $1.33 per diluted share, compared with an America West net loss excluding special items of $46 million, or $3.06 per diluted share, in the third quarter of 2004. Operating revenue for the combined carrier increased 36.4% to $926 million from America West's $679 million in the year-ago period. The airline's operating loss rose to $71 million from $10 million. "The biggest news from our third-quarter 2005 was the completion of the US Airways/America West merger, and obviously our third-quarter results do not yet include any of the expected positive effects from that merger," says Doug Parker, US Airways chief executive. "Like all airlines, we continue to face record high fuel prices, but we were very pleased with our unit revenue performance in the quarter." As of Oct. 31, the combined carrier's total cash and investments were $2.6 billion, of which $1.7 billion was unrestricted. From usairways at vision.moundalexis.com Thu Nov 10 13:21:50 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 10 Nov 2005 08:21:50 -0500 (EST) Subject: [US Airways] US Airways losses widen but CEO vows profits are on way Message-ID: <20051110082057.K673-100000@vision.moundalexis.com> 10 November 2005 ; Pittsburgh Post-Gazette US Airways losses widen but CEO vows profits are on way http://www.post-gazette.com/pg/05314/603570.stm --- By Dan Fitzpatrick, Pittsburgh Post-Gazette US Airways reported a third-quarter loss of $87 million yesterday, wider than the $29 million loss put up during the same period a year ago. [Photo] Caption: US Airways CEO Doug Parker But Chief Executive Officer Doug Parker contended that US Airways was on track to make money soon, due to a recent merger with Mr. Parker's old company, Tempe, Ariz.-based America West Airlines. "We continue to believe the new US Airways will be profitable in 2006," Mr. Parker said. The third-quarter results reflect only four full days of consolidated operations -- US Airways and America West merged on Sept. 27. Mr. Parker told analysts yesterday that he still expected the airline combination to save US Airways $250 million annually and generate $350 million in new revenue as US Airways closes an old headquarters in Arlington, Va., cuts capacity and integrates labor groups, reservations systems and brands. The US Airways name will be used exclusively early next year on all flights, and a single Web site is expected to be ready in April. Consumers should see a single branded product, with all planes painted in the US Airways colors and one system taking all reservations, by the end of 2006 or early 2007, executives told analysts in yesterday's conference call after the quarterly results were released. Like most airlines, US Airways continues to suffer from the effects of high fuel prices, which represent its biggest expense. Fuel costs rose 45 percent during the quarter, contributing to the loss even though revenue rose 36 percent and traffic was up 7.9 percent. Excluding one-time costs related to the merger, US Airways lost $23 million for the three months ended Sept. 30. Despite cutting hundreds of flights and more than 9,000 area workers since 2001, US Airways remains the No. 1 carrier at Pittsburgh International Airport, employing about 3,500 locally and accounting for roughly six and of every 10 flights, down from nearly nine of 10 at the decade's start. There is some concern that US Airways could cut more local jobs in the years to come as more operations shift to Tempe, but the company has said that no such decisions had been made. Separately, US Airways board members have approved compensation packages for several top officers. Mr. Parker will continue to make $550,000 a year, according to a filing with the U.S. Securities and Exchange Commission. Executive Vice President Jeff McClelland's base salary rose to $425,000 from $400,000; Executive Vice President Scott Kirby's salary increased to $425,000 from $380,000; and Chief Financial Officer Derek Kerr's salary is now $300,000, up from $262,000. All are eligible for performance bonuses tied to stock performance. Mr. Parker, for example, can make as much as $1.1 million in bonuses. Former US Airways Chief Financial Officer Bruce Lakefield received $286,058 in 2004 for eight months as the CEO. He succeeded David Siegel in May 2004. From usairways at vision.moundalexis.com Fri Nov 11 03:44:33 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 10 Nov 2005 22:44:33 -0500 (EST) Subject: [US Airways] US Airways beats forecasts Message-ID: <20051110224322.X673-100000@vision.moundalexis.com> 10 November 2005; USA Today US Airways beats forecasts http://www.usatoday.com/travel/news/2005-11-10-usair-earns_x.htm --- By Dawn Gilbertson, The Arizona Republic TEMPE, Ariz. -- Without an MBA, a CPA and hours of free time, it would have been tough to size up the complex first quarterly results of the new US Airways on Wednesday, but company executives made this much clear: The core business is strong and getting stronger despite still-high fuel prices. "When you sort through these results, I think you'll find they are a good bit better than people were forecasting for these two separate airlines," Chief Executive Officer Doug Parker said during an hourlong conference call with Wall Street analysts and investors. He said the Tempe-based airline, formed by the Sept. 27 merger of America West and bankrupt US Airways, is more confident than ever that it will be profitable next year, its first full year of operations, excluding one-time merger expenses. "We're early into the process, but it's going extremely well so far and we are excited about our positioning and our prospects," Parker said. Here's a big reason: Revenue was up sharply, largely because of higher average airfares, especially in the old America West operation. As US Airways and other carriers cut or reduce unprofitable routes in the face of a 40 percent-plus spike in their fuel bills, competition has become less cutthroat and fare wars are subsiding. America West's revenue per available seat mile rose 17% in the quarter; the old US Airways rose 5.5%. Scott Kirby, executive vice president of sales and marketing, said the nation's fifth-largest airline expects the revenue momentum to continue, and even to accelerate on the East Coast, where the old US Airways is huge. Analysts said the results were better than expected. The reported loss, excluding hefty merger-related expenses, was $23 million, or $1.33 per share, significantly better than the $1.85 per share loss analysts were expecting. The airline's stock rose more than 6% on the news, closing at a new high of $30.31. It began trading around $19 when the merger closed. The investors who helped America West pull off the acquisition of US Airways got in at $15 a share and have now doubled their money on paper. (They can't sell any shares until late March.) Merrill Lynch analyst Michael Linenberg, who has a buy rating on the stock, said the reported revenue of $926 million was better than he expected by $87 million. He raised his 12-month target price on US Airways to $36 from $28. Merrill Lynch was a major merger adviser for the company. JPMorgan Chase analyst Jamie Baker said in a report Wednesday that US Airways remains his top airline pick for investors seeking to capitalize on the changing competitive scene on the East Coast, which he notes is just beginning. The third-quarter results reported Wednesday represent the first earnings report from the combined airline -- sort of. Because the merger was completed just four days before the quarter ended, the reported results for US Airways Group mainly reflect America West's results. Add in merger expenses, accounting rules and new stock, and even company executives admit that the results are hard to decipher. It'll be a year or so before the company's reported results are relatively normal and easy to compare with previous periods. For the record, the company reported a net loss of $87 million, or $5.04 per share. That's up significantly from a loss of $29 million, or $1.92 per share, in the same period a year ago. Excluding merger-related costs, the numbers look better. The company reported a net loss of $23 million, or $1.33 a share, down from a loss of $46 million, or $3.06 a share, in the third quarter of 2004. Broken out by airline, America West reported a quarterly loss excluding special items of $7 million; the old US Airways, a loss of $80 million. Despite the red ink, executives and analysts were pleased. In addition to the trend in airfares, company officials said US Airways is on track to achieve the $600 million in merger "synergies" promised when the deal was announced. From the day the merger was announced, analysts and industry consultants were skeptical that the combined airline could hit that number. Company officials say they will do so through a combination of route restructurings, increased revenue and lower costs. They say they have found savings they didn't expect, such as $31 million a year by switching to the old America West's insurance carrier. Those don't show up in the third-quarter results. Looking ahead, they said the big merger challenges looming include negotiating new labor contracts and continuing to combine operations and move toward a single brand, US Airways. From usairways at vision.moundalexis.com Fri Nov 11 03:46:30 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 10 Nov 2005 22:46:30 -0500 (EST) Subject: [US Airways] US Airways mileage match honors veterans Message-ID: <20051110224434.A673-100000@vision.moundalexis.com> 10 November 2005 ; Pittsburgh Business Times US Airways mileage match honors veterans http://pittsburgh.bizjournals.com/pittsburgh/stories/2005/11/07/daily27.html --- US Airways Group Inc. will match frequent flyer miles donated to reunite hospitalized service people and their families during a special promotion from Nov. 11 to Dec. 11. The company announced the special program as a commemoration of Veteran's Day. US Airways will match mileage donations to the Fisher House Foundation through the airline's Miles of Hope program. For the 30-day period, all miles donated to Fisher House by the airline's frequent flyers will be matched by the airline for up to a total of 11.11 million miles. The number of miles is a nod to the Nov. 11 date of Veteran's Day. Fisher House provides support to families of service men and women injured in the wars in Iraq and Afghanistan. Donated miles help provide airline tickets to sick or injured troops who have leave to visit their families, or to family members to visit the service men and women in the hospital. US Airways (NYSE: LCC) was formed by the $1.5 billion merger of US Airways Group Inc. of Virginia and America West Group Holdings Corp. of Arizona. The deal closed in late September. The combined carrier, the largest at Pittsburgh International Airport, took the U.S. Airways name and moved its headquarters to Tempe, Ariz. US Airways operates 4,000 flights per day and serve more than 225 communities in the United States, Canada, Europe, the Caribbean and Latin America. From usairways at vision.moundalexis.com Fri Nov 11 14:03:59 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 11 Nov 2005 09:03:59 -0500 (EST) Subject: [US Airways] New US Airways expects to be profitable in 2006 Message-ID: <20051111090318.W673-100000@vision.moundalexis.com> 11 November 2005 ; m-Travel.com and Travel Distribution News New US Airways expects to be profitable in 2006 http://www.m-travel.com/news/2005/11/new_us_airways_.html --- Due to merger-related expenses and fuel costs, US Airways Group Inc. reported a third-quarter loss. The company's net loss grew to $87 million, or $5.04 per share, from $29 million, or $1.92 per share, during the same period last year. "Obviously, our third-quarter results do not yet include any of the expected positive effects from that merger," chief executive Doug Parker reportedly said. "The airline is expected to be profitable in 2006." The results' were airline's first earnings release since US Airways merged with America West in September. Separately, US Airways had a net loss of $80 million in the third quarter, and America West a $7 million loss. As per the information available, revenue totaled $926 million, a 36 percent increase from $679 million a year earlier. Traffic increased 7.9 percent to 6.72 billion revenue passenger miles - one customer flown a mile - with capacity expanding by 9.9 percent. Occupancy of the carrier's planes fell, however, to 79.9 percent from 81.4 percent a year ago. "We're extremely encouraged by what we've seen at other airlines, even in small amounts," Parker reportedly said. "We see a nice improvement in unit revenue." Excluding one-time costs related to the merger, US Airways lost $23 million for the three months ended September 30. Despite cutting hundreds of flights and more than 9,000 area workers since 2001, US Airways remains the No. 1 carrier at Pittsburgh International Airport, employing about 3,500 locally and accounting for roughly six and of every 10 flights, down from nearly nine of 10 at the decade's start, according to media. From usairways at vision.moundalexis.com Fri Nov 11 14:04:33 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 11 Nov 2005 09:04:33 -0500 (EST) Subject: [US Airways] CFO:US Airways cuts managers to save $100M Message-ID: <20051111090359.Q673-100000@vision.moundalexis.com> 11 November 2005 ; Pittsburgh Tribune-Review CFO:US Airways cuts managers to save $100M http://pittsburghlive.com/x/tribune-review/trib/newssummary/s_393395.html --- By staff and wire reports Friday, November 11, 2005 US Airways Group should save about $100 million a year through elimination of more than 30 percent of management jobs at or above director level, an executive said Thursday. The move is part of the more than $250 million in annual savings the airline hopes to have as America West Airlines and US Airways combine their operations over the next two years, Chief Financial Officer Derek Kerr told analysts attending the Citigroup Transportation Conference. The airline, for instance, should save $31 million by switching insurance carriers. Elsewhere, the company said it's discussing a possible future order of 90-seat regional jets from Embraer. US Airways currently has no such aircraft in its fleet but has "no plans at all to increase the size of the fleet" beyond the current 361 planes until at least 2007, said Kerr. From usairways at vision.moundalexis.com Fri Nov 11 22:25:47 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 11 Nov 2005 17:25:47 -0500 (EST) Subject: [US Airways] The Bottom Line: Pepsi versus Coke: US Airways at a sticky crossroads Message-ID: <20051111172435.M673-100000@vision.moundalexis.com> 11 November 2005 ; East Valley Tribune The Bottom Line: Pepsi versus Coke: US Airways at a sticky crossroads http://www.eastvalleytribune.com/index.php?sty=52930 --- By John Yantis, Tribune November 11, 2005 In a totally unscientific poll that even produced three identical responses from the same e-mailer, it appears the flying public will be absolutely no help to US Airways when it comes to choosing Pepsi or Coke. The carrier, which merged with America West Airlines in September, has to decide which beverages it will serve on its flights. America West has Pepsi and Budweiser. US Airways offers Coca-Cola and its brand of beer is Miller. An online Tribune poll revealed a virtual dead heat in the great Coke versus Pepsi debate. Of the 346 votes cast, 50.87 percent took Coke and 49.13 percent went with Pepsi. Pepsi has demanded a recount. Because it.s an issue mired in syrup, we asked readers to weigh in via e-mail. The newspaper was kind enough to give my computer address to the masses. Once again, the poll didn.t really tell anybody anything. There were 37 responses tallied: 16 for Coke or Diet Coke, 15 for Pepsi or Diet Pepsi, three for both, two for Dr Pepper or Diet Dr Pepper and a single vote for Sam.s Club soda. The survey attracted attention far and wide. Bill Blum Jr., a Rochester, N.Y. US Air employee wrote "Although I have served Coke for the past 18 years, I personally prefer Pepsi. I hope we adopt AWA.s brands!" Scottsdale.s Matt Chew said it ought to be Coke. "I fly Am West a lot and this has been bugging me ever since they began. Certainly hope they change." Timothy Lee of Casa Grande insists Coke products are the best. "There is NO substitute for Diet Coke," he writes. "None. In fact, when offered a Diet Pepsi alternative, I always say, .No thanks, I.ll take water, please!. " Denise Carney said while she prefers Pepsi, she shouldn.t have to choose. "Why can.t you serve both kinds of soda and both kinds of beer? What.s the big deal????" It was a big deal to Alita Arnold. She sent three notes in the span of 12 minutes to say the carrier ought to go with Pepsi and Bud. She was a bit hostile about the choice. "Why go with what a loser airline.s used," she wrote in the first e-mail. "America West is a winner and we should keep what they use NOT what a loser/bankrupt airline used." Brad Hatch.s e-mail said Pepsi, about 500 times. Ryan F. rejected both major parties. "I don.t care which cola is chosen by US Airways, but I do care which supplier is chosen," he said. "The one that can provide Dr Pepper." Karla Dent said she and her daughter refuse when offered Pepsi. "We.d rather NOT DRINK anything as to drink a yucky Pepsi!," she screamed in her e-mail. We are COKE drinkers in this house! My best friend in Cincinnati is also a COKE drinker. I choose where I eat and drive through by where I can get a COKE with my meal. If I go to Taco Bell, I get iced tea . . . NEVER Pepsi!" Barbara Mohney said serving both could please all of the people all of the time. "One of the reasons I choose to fly American West was the fact they serve Pepsi and not Coke," she wrote. "Coke is everywhere. I am always surprised when I can get Pepsi at any eatery. It is my favorite cola. Maybe US Air could serve both? That would be a good compromise." From usairways at vision.moundalexis.com Mon Nov 14 02:43:54 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 13 Nov 2005 21:43:54 -0500 (EST) Subject: [US Airways] US Airways resumes service in New Orleans Message-ID: <20051113214315.T673-100000@vision.moundalexis.com> 14 November 2005 ; The Louisiana Weekly US Airways resumes service in New Orleans http://www.louisianaweekly.com/weekly/news/articlegate.pl?20051114n --- US Airways has begun flying out of Louis Armstrong International Airport. As of Wednesday, November 9, the airline has resumed services to the Crescent City with three daily departures and three daily arrivals until January 2006 when the airline expects to increase its service. US Airways offers flights to Philadelphia, Pittsburg and Regan National in Washington, D.C. Incoming flights to Louis Armstrong are from Philadelphia, Reagan National and Charlotte, North Carolina. US Airways participated in the relief efforts following Hurricanes Katrina, Rita and Wilma, including evacuation flights and the donation of Dividend Miles and needed supplies. From usairways at vision.moundalexis.com Mon Nov 14 23:34:03 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 14 Nov 2005 18:34:03 -0500 (EST) Subject: [US Airways] US Airways expects busy holiday Message-ID: <20051114183309.R673-100000@vision.moundalexis.com> 14 November 2005 ; The Business Journal of Phoenix US Airways expects busy holiday http://phoenix.bizjournals.com/phoenix/stories/2005/11/14/daily1.html --- Diane Arthur The Business Journal US Airways is ready for turkey time and a big-time rush as U.S. travelers head home for the Thanksgiving holiday. 'Tis the season for air travel and US Airways Group Inc. (NYSE: LCC), which now includes America West Airlines, tells the Phoenix Business Journal that holiday travel bookings are filling up quickly. Although, the airline will not release specific travel numbers, spokesman Phil Gee said planes are filling up quickly. "We always anticipate a strong holiday travel season and we're not being let down this year." Last year, America West reported record travel stats. However, the pre-merger US Airways' posted holiday travel declines and made headlines for delaying huge amounts of luggage to holiday travelers in top markets. According to the Airline Quality Rating, which is compiled at Wichita State University, holiday travel prices are higher than last year, but chances are the earlier you book the better fare you will find. However, researchers also don't count out last-minute bargains -- especially for people who book online. That report, released Monday, expects traffic volume this year to surpass last year when approximately 110 million people flew somewhere in the United States during November and December. The report also speculated that this holiday travel season will be the busiest since 2000. Here in Phoenix, most holiday travelers are planning to grab a USAirways flight for a trip to the Midwest or Southern California, said Gee. Tempe-based US Airways is the result of the merger between America West and US Airways, a $1.5 billion transaction that was announced May 19 and closed Sept. 27. US Airways, US Airways Shuttle and US Airways Express combine for more than 4,000 flights daily to 225 destinations in the U.S., Canada, Europe, the Caribbean and Latin America. From usairways at vision.moundalexis.com Tue Nov 15 13:38:53 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 15 Nov 2005 08:38:53 -0500 (EST) Subject: [US Airways] Suns' home name to be changed to US Airways Center Message-ID: <20051115083810.C673-100000@vision.moundalexis.com> 14 November 2005 ; Seattle Post-Intelligencer Suns' home name to be changed to US Airways Center http://seattlepi.nwsource.com/scorecard/nbanews.asp?articleID=144304 --- Phoenix, AZ (Sports Network) - The Phoenix Suns will have a new name to their home, as America West Arena will be called the US Airways Center. The new 10-year agreement follows the merger between America West Airlines and US Airways, which was finished September 27. The naming conversion is scheduled to take place over the next several months, although the official name change will likely come in January. Until then, the arena will continue to operate as America West Arena. "Because of the comprehensive and dramatic enhancements completed over the past few years, today we really have a state-of-the-art building again compared to the one that opened in 1992," said Suns chairman and CEO Jerry Colangelo. "It is the sports and entertainment facility of the future, so it is most appropriate that it be identified with the airline of the future in name and spirit." The arena, which is owned by the city of Phoenix, recently underwent a $70 million expansion and improvement project. From usairways at vision.moundalexis.com Tue Nov 15 13:40:08 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 15 Nov 2005 08:40:08 -0500 (EST) Subject: [US Airways] US Airways, AirTran buck airline decline Message-ID: <20051115083918.I673-100000@vision.moundalexis.com> 14 November 2005 ; Investor's Business Daily US Airways, AirTran buck airline decline http://www.investors.com/breakingnews.asp?journalid=32897556&brk=1 --- By August Cole SAN FRANCISCO (MarketWatch) - Shares of US Airways Group, lifted by a Prudential Equity Group research note, and AirTran Holdings managed to advance Monday while the broader airline sector lost ground with a rise in oil prices. The Amex Airline Index ($XAL) fell 0.9% to 51.57 points as crude crept higher, though it remained below $58 a barrel in New York. See Futures Movers. Prudential now has a $35 price target on US Airways shares and kept its neutral weight rating. "Given our view that industry conditions are likely to continue improving, we believe LCC will rise with the group," wrote Prudential analyst Bob McAdoo. US Airways (LCC) stock traded hit a new high of $34.50 and closed up 1.2% to $33.75. AirTran Holdings (AAI) hit a high for the year of $16.54 and closed up 1.4% to $16.42. AirTran stock is up 25% during the past 30 days. JetBlue Airways (JBLU) slipped 0.3% to $19.75 as another standout gainer after Calyon Securities raised its rating on the stock to neutral from reduce. Looking at the industry at large, Calyon Securities analyst Ray Neidl wrote that he expects the industry to lose $2.4 billion in 2006, with fuel prices in the mid-$50 a barrel range. He expects the industry to lose some $4 billion this year as high fuel prices and low fares cut into airline earnings. Since oil prices have retreated and fuel prices have eased off their highs, the Amex Airline Index is up 30% since September, Neidl pointed out. Sustaining those gains will be difficult unless oil prices fall further. "We expect the current rally to continue in the short-term but are looking for a pullback before the slow winter season," he wrote. American Airlines parent AMR Corp. (AMR) traded lower by 1% to $16.60 as the most active stock in the index. Continental Airlines (CAL) also fell, losing 4.6% to $15.17, a decline that follows last recent gains. In the past 30 days, the stock is up 48% as analysts weigh in on the carrier's prospects next year. Continental is expected to turn a profit, as is AMR Corp. From usairways at vision.moundalexis.com Tue Nov 15 13:41:40 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 15 Nov 2005 08:41:40 -0500 (EST) Subject: [US Airways] US Airways to cut more flights here Message-ID: <20051115084104.T673-100000@vision.moundalexis.com> 15 November 2005 ; Pittsburgh Post-Gazette US Airways to cut more flights here http://www.post-gazette.com/pg/05319/606507.stm --- By Dan Fitzpatrick US Airways intends to eliminate 13 more nonstop departures after the holidays, including routes to Dallas and Detroit, and drop the airline's Pittsburgh presence below 200 daily flights for the first time in recent memory. Before the attacks of Sept. 11, 2001, Pittsburgh was the largest city in US Airways' route system, with 542 daily departures. In January, when the airline trims its local offerings to 191 flights, Pittsburgh International will slip to the fifth-largest airport in the US Airways system, after Charlotte, N.C.; Philadelphia; Phoenix; and New York's LaGuardia Airport, which will have 203 daily US Airways flights. With 204 daily departures from Pittsburgh this month, US Airways is still the region's dominant carrier, offering just less than six out of every 10 flights (down from nine of 10 flights at the decade's start). But after traffic plunged in the wake of the 9/11 attacks, the airline opted to shift more of its flights to bigger cities along the East Coast and strip Pittsburgh of its status as a "hub," creating opportunities for new competition from low-cost carriers and lower prices for Pittsburgh-area travelers. With the latest cuts, most of which take effect Jan. 10, US Airways will have shed more than 350 Pittsburgh flights since 9/11, including all direct service to Europe. The latest reductions will do away with three daily flights to Dallas/Ft. Worth International Airport and four flights a day to Detroit Metropolitan Airport currently offered by US Airways contract carrier Trans States Airlines. The Detroit flights officially will stop on Jan. 2, according to a Trans States spokesman. Detroit will continue to be served by bankrupt Northwest Airlines, which offers six flights a day and plans to add one more in January, according to the Allegheny County Airport Authority. Dallas will continue to be served by American Airlines commuter carrier American Eagle, which has five daily flights and intends to add another in December. At US Airways, Dallas and Detroit service is ending strictly for financial reasons. Despite emerging from its second bankruptcy in September, US Airways continues to struggle with high fuel prices and industrywide turmoil -- it recently reported an $87 million loss for the third quarter, wider than the $29 million loss posted during the same period a year ago. "When a market is underperforming, we simply can't afford to keep it," said US Airways spokesman Phil Gee. "We're still hemorrhaging and losing money, and there doesn't seem to be any relief on the horizon with fuel costs. We have to be vigilant in what markets we continue to service." New US Airways Chief Executive Officer Doug Parker has said he had no intention of making "major changes" in Pittsburgh and that travelers should have more opportunities to connect to places on the West Coast via Phoenix, now a major US Airways hub. But Pittsburgh no longer is a major East-West connector for the airline, which recently moved its headquarters from Arlington, Va., to Tempe, Ariz., as part of a late September merger with America West Airlines. US Airways pulled its direct routes to San Diego and Seattle in August, leaving nonstop service only to Los Angeles and San Francisco from Pittsburgh. In January, the one San Francisco flight will drop to four days a week. US Airways also plans to take away two of its eight daily flights to Charlotte, one of its five daily flights to Orlando, Fla.; one of its three daily flights to Tampa, Fla.; and one of its six daily flights to Richmond, Va. US Airways is not pulling back everywhere, however. This month it reinstated one daily flight to Ithaca, N.Y., and two daily flights to both Elmira and Binghamton, N.Y. Service to all three cities stopped during US Airways' second bankruptcy last November. From usairways at vision.moundalexis.com Wed Nov 16 14:32:51 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 16 Nov 2005 09:32:51 -0500 (EST) Subject: [US Airways] US Airways and America West Pilots Kick-Off Negotiations With Management Message-ID: <20051116093116.P673-100000@vision.moundalexis.com> 15 November 2005 ; PR Newswire US Airways and America West Pilots Kick-Off Negotiations With Management http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/11-15-2005/0004217080 --- Pilots' Shared Goals Are to Attain a Fair Combined Contract, Move Forward as a Unified Group PHOENIX, Nov. 15 /PRNewswire/ -- The Joint Negotiating Committee for the pilots of America West and US Airways began talks today in Phoenix, Ariz., on a Single Agreement with US Airways (NYSE: LCC) management. Both pilots groups are represented by the Air Line Pilots Association, International. Each pre-merger pilot group is currently governed under its own collective bargaining agreement. The Single Agreement is one of three steps that must be completed before the US Airways and America West pilots can conduct common operations. Other steps include achieving an integrated seniority list and obtaining a single FAA operating certificate in order to conduct common operations. The Joint Negotiating Committee consists of two members from each pre-merger pilot group who are elected by their respective Master Executive Councils (MECs), the local governing body of each pilot group. The Committee has been preparing for these contract negotiations for the past several months and has already outlined a process for the initial bargaining sessions with US Airways management. The three-phase negotiating schedule for the Single Agreement will begin with talks on administrative issues such as pilot vacations and the dispute resolution mechanism. The second phase includes operational issues, such as pilot training and scheduling provisions. Important economic and job security provisions containing compensation, health and welfare benefits, and retirement will be discussed during the third phase. Captain JR Baker, chairman of the America West MEC, said, "For the past several months, management has touted the synergies this merger will create and rewarded their shareholders and investors. Now it's time for management to do the right thing during these negotiations and reward the employees for their hard work and dedication to this airline." Captain Bill Pollock, chairman of the US Airways MEC, said, "The Joint Negotiating Committee has mapped out a direction that will position us to negotiate a contract that will meet both pilot groups' needs and recognize our participation in the success of the new US Airways. I am also encouraged that this process will create a unified pilot group while meeting our contractual goals." Unless all parties involved agree otherwise, US Airways will not be given the right to use the merged seniority list prior to the successful conclusion of the Single Agreement. The initial negotiating schedule runs through early February 2006 and will be expanded as talks progress. Founded in 1931, ALPA represents 63,000 pilots at 40 airlines in the U.S. and Canada. Visit the ALPA website at http://www.alpa.org for more information. From usairways at vision.moundalexis.com Wed Nov 16 14:34:50 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 16 Nov 2005 09:34:50 -0500 (EST) Subject: [US Airways] US Airways "neutral weight," target price raised Message-ID: <20051116093303.R673-100000@vision.moundalexis.com> 15 November 2005 ; New Ratings US Airways "neutral weight," target price raised http://www.newratings.com/analyst_news/article_1117126.html --- NEW YORK, November 15 (newratings.com) - Analyst Bob McAdoo of Prudential Financial [1] reiterates his "neutral weight" rating on US Airways Group Inc (USG.FSE) [2], while raising his estimates for the company. The target price has been raised from $15 to $35. In a research note published yesterday, the analyst mentions that the company.s performance is poised to improve in the near term due to the improving industry fundamentals. US Airways expects to achieve profitability in 2006. The analyst expresses his concern, however, regarding the possibility of slower-than-anticipated realization of synergies from the recent merger with America West. The EPS estimate for 2006 has been raised from -$5.99 to -$1.98. [1] http://www.newratings.com/analyst_news_by/Prudential+Financial.html [2] http://www.newratings.com/companies/company.asp?isin=US9119055039 From usairways at vision.moundalexis.com Wed Nov 16 23:43:02 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 16 Nov 2005 18:43:02 -0500 (EST) Subject: [US Airways] Pilots groups, US Airways begin talks Message-ID: <20051116184228.F673-100000@vision.moundalexis.com> 16 November 2005 ; The Business Journal of Phoenix Pilots groups, US Airways begin talks http://phoenix.bizjournals.com/phoenix/stories/2005/11/14/daily22.html --- Talks are under way between US Airways Group Inc. and the joint negotiating committee representing the pilots of America West and US Airways. Both sides are working on a single agreement to reflect the merger of both airlines earlier this year. Currently each pre-merger pilot group is governed under its own collective bargaining agreement. The single agreement is one of three steps that must be completed before the US Airways and America West pilots can conduct common operations. Other steps include achieving an integrated seniority list and obtaining a single FAA operating certificate. According to the pilots, the talks will begin with administrative issues such as pilot vacations and the mechanism for resolving disputes. The second phase will focus on operational issues such as pilot training and scheduling provisions. The third phase will address pay, benefits and retirement. The joint negotiating committee consists of two members from each pre-merger pilot group who were elected by their respective Master Executive Councils (MECs), the local governing body of each pilot group. Capt. JR Baker represents America West pilots and Capt. Bill Pollock represents pre-merger US Airways pilots. The initial negotiating schedule began Tuesday runs through early February 2006 and will be expanded as talks progress. Both pilots groups are represented by the Air Line Pilots Association International, which represents 63,000 pilots at 40 airlines in the United States and Canada. Tempe-based US Airways Group (NYSE: LCC) is the consolidated airline formed by the mergers of America West and US Airways. The $1.5 billion transaction closed Sept. 27. US Airways, US Airways Shuttle and US Airways Express together account for more than 4,000 daily flights to 225 destinations in the U.S., Canada, Europe, the Caribbean and Latin America. From usairways at vision.moundalexis.com Sun Nov 27 16:08:45 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 27 Nov 2005 11:08:45 -0500 (EST) Subject: [US Airways] US Airways pilots continue talks to merge contracts Message-ID: <20051127110744.R3948-100000@vision.moundalexis.com> 18 November 2005 ; Beaver County Times Allegheny Times US Airways pilots continue talks to merge contracts http://www.timesonline.com/site/news.cfm?newsid=15599004 --- By: Karen Ferrick-Roman - Times Staff The two pilot groups for the new US Airways have started talks to reach a single contract since the merger of US Airways and America West Airlines. Both groups are represented by the Air Line Pilots Association. Each will continue to be covered by their separate agreements until a single contract is reached. Until that agreement, the airline cannot dovetail its seniority lists, according to a press statement issued by ALPA. Union leaders met Tuesday through Thursday in Phoenix, said J.R. Baker, chairman of the America West executive council. He characterized these initial meetings as going well. Other meetings are scheduled through February, said Jack Stephan, spokesman for the US Airways ALPA group. February "seems like a reasonable target," for reaching a contract, Baker said. Neither pilot group nor the company would benefit from delaying the process, Stephan said. Coming up with one agreement involves three steps: administrative issues such as vacations and how to resolve disputes; operational issues such as pilot training and scheduling; and pay, benefits and retirement. When the airlines announced their merger in the spring, America West had 1,888 mainline pilots and US Airways had 2,957. As the airlines move toward a single operation, which is expected within two years, it plans to reduce total aircraft. In the spring, US Airways had 276 mainline jets and America West operated 143. With the merger, the combined airline expected to operate 361 planes instead of 419. Since then, the combined number has been revised, with four more planes expected to be removed from the America West fleet, Stephan said. However, neither Stephan nor Baker anticipated any additional changes in staffing at this point. "I think our staffing numbers are good for the next 90 days," Baker said. How the planes are used could be more important than how many planes the airline flies, Stephan said. Fewer planes in the sky for more hours could mean more work than more planes flown for less time. From usairways at vision.moundalexis.com Wed Nov 30 03:37:43 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 29 Nov 2005 22:37:43 -0500 (EST) Subject: [US Airways] US Airways orders 20 Airbus A350 jets Message-ID: <20051129223637.K3948-100000@vision.moundalexis.com> 29 November 2005 ; Seattle Post Intelligencer (AP) US Airways orders 20 Airbus A350 jets http://seattlepi.nwsource.com/business/1310AP_US_Airways_Airbus.html --- By MICHELLE ROBERTS AP BUSINESS WRITER PHOENIX -- US Airways Group Inc. has ordered 20 Airbus A350 planes honoring its promise to buy the fuel-efficient aircraft aimed at trans-Atlantic flights as part of a financing deal for the airline's acquisition by America West Airlines. Airbus SAS announced the binding order on Tuesday but did not disclose the financial terms. At list price, the 20 planes would be worth an estimated $4 billion, but buyers of multiple planes often get discounts. The European aircraft maker provided financing to help America West Holdings Corp. complete its purchase of US Airways, a deal closed in late September. As part of that deal, the airline agreed to buy the 20 Airbus A350's, designed to compete with Boeing's 787 "Dreamliner." The combined airline kept the US Airways name. The new aircraft will begin replacing US Airways' current fleet of Boeing 767s and Airbus A330s in 2011 on the airline's trans-Atlantic routes, said US Airways spokesman Carlo Bertolini. All of the wide-body planes were part of the old US Airways' fleet; America West had nothing bigger than a Boeing 757 before the merger. Currently, US Airways flies to about a dozen European cities, primarily from Philadelphia and Charlotte, N.C. Right now, given the number of trans-Atlantic flights they operate, the A350 "seems like too much of an airplane for their route system," said Ray Neidl, an analyst for Calyon Securities. The planes are designed to carry 253 passengers. It's not clear where the company will use all 20 planes, he said, but the management, which came from America West, is fairly sharp, he said. "Maybe they took the aircraft for the financing, but they're pretty astute," Neidl said. Still, he said he'll remain nervous until he sees what the company plans to do with the fleet of A350s. Airbus and Boeing Co. have been locked in a heated battle for sales of their mid-sized fuel-efficient planes. The A350 won't enter service until 2010, two years after Boeing's 787. Airbus, owned by European Aeronautic Defence and Space Co. and BAE Systems PLC, has secured 155 orders so far and commitments from 11 customers. In October, the governments of France, Germany, Britain and Spain agreed to help aid development of the A350 - part of a growing dispute between the United States and Europe over subsidies and tax breaks to aircraft makers. The U.S. filed World Trade Organization litigation last year against European Union governments for funding of Airbus jet programs. From usairways at vision.moundalexis.com Wed Nov 30 03:39:24 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 29 Nov 2005 22:39:24 -0500 (EST) Subject: [US Airways] US Airways signs order for 20 Airbus A350 jetliners Message-ID: <20051129223826.I3948-100000@vision.moundalexis.com> 29 November 2005 ; The Business Journal of Phoenix US Airways signs order for 20 Airbus A350 jetliners http://phoenix.bizjournals.com/phoenix/stories/2005/11/28/daily10.html --- US Airways Group Inc. has placed a binding order for 20 Airbus A350 aircraft, the Associated Press reported Tuesday, following a commitment first made when the US Airways-America West Airlines merger was announced in May. At the time of the merger, airline officials said the newly formed carrier would be getting a $250 million loan from Airbus, and it would be the launch airline for the A350, with deliveries scheduled between 2011 and 2013. In making the announcement of the order, Airbus did not announce financial terms, but published reports have said the aircraft deal is worth an estimated $4 billion. European Aeronautic Defence and Space Co. owns 80 percent of Airbus, and Britain's BAE Systems plc owns the other 20 percent. The European aircraft producer, the chief rival of the Boeing Co. (NYSE: BA) in the commercial jet airliner business, has 155 orders from 11 customers for the A350. The mid-size aircraft is designed to carry up to 253 passengers 8,800 nautical miles. Tempe-based US Airways (NYSE: LCC), through its carriers US Airways, US Airways Shuttle and US Airways Express, serves 225 destinations in the U.S., Canada, Europe, the Caribbean and Latin America. From usairways at vision.moundalexis.com Wed Nov 30 23:44:02 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 30 Nov 2005 18:44:02 -0500 (EST) Subject: [US Airways] Following Delta, US Airways Drops Its U.S. Meeting Product Message-ID: <20051130184323.A3948-100000@vision.moundalexis.com> 30 November 2005 ; Airport Business Following Delta, US Airways Drops Its U.S. Meeting Product http://www.airportbusiness.com/article/article.jsp?id=4440 --- Almost one year after Delta Air Lines discontinued its Meeting Network, US Airways, newly merged with America West, is scaling back its meeting product. According to a letter sent to US Airways clients in September, the airline "recently completed an evaluation of our meeting product and concluded that we will no longer offer this product for meetings held within the contiguous United States and Canada." The letter goes on to explain that the airline will continue to offer the meeting product - including percentage discounts and zone fares; a dedicated toll-free number to make or change meeting reservations; and free tickets based on the number of travelers booked - for international destinations, excluding Canada. Philip Gee, a spokesman for US Airways, said that America West had discontinued its meeting product earlier in the year, and that with the recent merger, which officially took place September 26, "US Airways was merely bringing their policy in line with America West." Gee also explained that US Airways continues to offer a group travel product, with special pricing for 10 or more passengers on the same flight. The decision means that within the past year, two of the nation's five biggest airlines have either dropped their meeting departments or scaled them back. Yvonne Long, senior vice president of Air Fulfillment Services in Des Moines, Iowa, calls US Airways' decision to drop domestic meetings contracts "crazy." It means, Long said, that it will be harder for companies such as hers - which is dedicated to the group and meeting air travel market and counts Fortune 100 companies among its customers - to book with airlines such as Delta and US Airways. "If they are less organized internally, it makes it hard to work with them," Long says. "I just don't understand the philosophy - you take some of your most valued supporters and you make yourself difficult to deal with." Alynne Hanford, national sales manager, groups and company meetings, American Airlines, says that her company remains committed to keeping its meeting product in place. "We've been able to show management how valuable it is to have this [meeting product] in place," Hanford says. "With the revenue we produce, we've been successful in demonstrating how critical this market is. We really believe in it and stand behind it."