From usairways at vision.moundalexis.com Fri Sep 2 23:35:39 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 2 Sep 2005 19:35:39 -0400 (EDT) Subject: [US Airways] Bankruptcy judge OKs US Airways pension settlement Message-ID: <20050902193435.B673-100000@vision.moundalexis.com> 2 September 2005 ; Phoenix Business Journal Bankruptcy judge OKs US Airways pension settlement http://phoenix.bizjournals.com/phoenix/stories/2005/08/29/daily52.html?jst=b_ln_hl --- A federal bankruptcy judge Friday approved a settlement between US Airways Group and the U.S. Pension Benefit Guaranty Corp. (PBGC), helping to pave the way for that airline's merger to close with America West Airlines this fall. In addition to resolving about $2.7 billion worth of claims, the settlement gives the pension agency an ownership stake in the airline and helps clear the way for US Airways to emerge from bankruptcy and merge with America West. Under the settlement deal, US Airways would pay $13.5 million in cash, give the PBGC a $10 million note and 70 percent of unsecured creditors stock, according to the motion filed in court, and reviewed by Reuters. US Airways had underfunded plans covering its flight attendants, mechanics and certain non-union employees by $2.5 billion. The PBGC became trustee of those plans Feb. 1 and will guarantee $2.3 billion of that liability. Tempe-based America West (NYSE: AWA) operates more than 900 flights daily to more than 90 destinations in the United States, Canada, Mexico and Costa Rica. Arlington, Va.-based US Airways (OTCBB: UAIRQ) serves 183 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways, US Airways Shuttle and the US Airways Express partner carriers operate approximately 3,400 flights per day. Under merger plans announced in May, the merged airline will operate under the US Airways name. It will be based in Tempe and led by current America West Chairman and Chief Executive Doug Parker. From usairways at vision.moundalexis.com Fri Sep 2 23:36:57 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 2 Sep 2005 19:36:57 -0400 (EDT) Subject: [US Airways] US Airways to Join Industry New Orleans Evacuation Effort Message-ID: <20050902193557.K673-100000@vision.moundalexis.com> 2 September 2005 ; PR Newswire US Airways to Join Industry New Orleans Evacuation Effort http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-02-2005/0004099336&EDATE= --- ARLINGTON, Va., Sept. 2 /PRNewswire-FirstCall/ -- US Airways will participate in the airline industry's effort to help in evacuation efforts for New Orleans. Flights will begin later this afternoon and continue at least through the weekend. US Airways will provide a 126-seat Boeing 737-300 aircraft, as well as other aircraft as needed. "The employees of US Airways are committed to doing everything they possibly can to help those who are suffering as a result of this catastrophe, volunteering their time, job skills and resources," said Bruce R. Lakefield, US Airways president and chief executive officer. "We are ready and willing to assist in the relief efforts." US Airways is also working closely with the American Red Cross, which has said that monetary assistance currently is the best alternative. The company created earlier this week the US Airways Employee Relief Fund to help colleagues in the Gulf States, many of whom have lost everything. From usairways at vision.moundalexis.com Fri Sep 2 23:39:50 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 2 Sep 2005 19:39:50 -0400 (EDT) Subject: [US Airways] US Airways pension deal Message-ID: <20050902193729.W673-100000@vision.moundalexis.com> 2 September 2005 ; Kansas City Star US Airways pension deal http://www.kansascity.com/mld/kansascity/12545119.htm --- A federal court today approved a deal between US Airways Group Inc. and the Pension Benefit Guaranty Corp. that resolves the agency's nearly $2.7 billion in claims in the bankruptcy case, and ensures its support for the airline's reorganization plan. Judge Stephen S. Mitchell of the U.S. Bankruptcy Court in Alexandra, Va., signed off on the deal, which will give the PBGC cash, a note and an ownership stake in the reorganized airline to settle its claims rising out of US Airways' termination of its pension plans earlier this year. The deal removes a potential stumbling block to the Arlington-based air carrier's emergence from bankruptcy protection through a merger with America West Holdings Corp. US Airways attorney Brian Leitch said the deal is "good for the PBGC, good for the creditors and good for the estate." The PBGC assumed responsibility for US Airways pensions representing 51,000 employees, including flight attendants and machinists, after the bankruptcy court cleared the airline to terminate the plans in January. The pension agency had already taken on the airline's pension plan for its pilots. The PBGC has claims totaling about $2.7 billion. The settlement gives the PBGC a $13.5 million cash payment, a $10 million note and 70 percent of the stock available to unsecured creditors under US Airways' proposed Chapter 11 plan. The pension agency pledged not to sell the shares for at least five months. At Friday's hearing, US Airways attorney Leitch said the deal would remove uncertainty for the airline's other creditors about the total amount of the PBGC's claims in the bankruptcy case. "All parties benefit from the clarity the deal provides," Leitch said. The official committee of unsecured creditors said it "wholeheartedly supports" the deal. US Airways filed for Chapter 11 bankruptcy protection for a second time in September 2004. US Airways and America West expect to complete their merger in the fall. A hearing on US Airways. Chapter 11 reorganization plan, which is built upon the merger, is scheduled for Sept. 15. From usairways at vision.moundalexis.com Fri Sep 2 23:42:06 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 2 Sep 2005 19:42:06 -0400 (EDT) Subject: [US Airways] Court OKs US Airways Aircraft Sales Message-ID: <20050902194134.O673-100000@vision.moundalexis.com> 2 September 2005 ; Forbes Court OKs US Airways Aircraft Sales http://www.forbes.com/business/energy/feeds/ap/2005/09/02/ap2205179.html --- US Airways Group Inc. on Friday said the bankruptcy court approved its proposed sales of Embraer regional jet aircraft and slot assets to Republic Airways Holdings Inc. for $100 million in cash. The deal, which is expected to close within the next two weeks, comes as the company completes a Chapter 11 restructuring and eventual merger with America West Airlines. US Airways said it also filed a motion to sell and leaseback five Airbus A330s, nine Airbus A319s and five Airbus A320s - sales that would generated more than $120 million in cash. The court is scheduled to review the transactions Sept. 9. "The additional liquidity realized from these transactions, when added to the cash being generated from other capital resources, should allow us to emerge from Chapter 11 with an even larger cash cushion than originally anticipated," said Chief Financial Officer Ron Stanley, in a statement. In other news, the bankruptcy court also approved its deal with the government-run Pension Benefit Guaranty Corp., resolving nearly $2.7 billion in claims. Under the agreement, US Airways said it will pay Pension Benefit $13.5 million in cash, as well as providing a $10 million note and 70 percent of its common shares allocated to unsecured creditors. Over-the-counter shares of US Airways closed down a penny at 27 cents and America West shares edged up 1 cent to close at $6.75 on the New York Stock Exchange. Meanwhile, shares of Republic Airways shed 7 cents to $12.52 in aftermarket activity, after closing down 59 cents, or 4.5 percent, at $12.58 on the Nasdaq. From usairways at vision.moundalexis.com Fri Sep 2 23:43:10 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 2 Sep 2005 19:43:10 -0400 (EDT) Subject: [US Airways] Judge approves US Airways pension deal with federal agency Message-ID: <20050902194222.L673-100000@vision.moundalexis.com> 2 September 2005 ; Jurist Legal News & Research Judge approves US Airways pension deal with federal agency http://jurist.law.pitt.edu/paperchase/2005/09/judge-approves-us-airways-pension-deal.php --- A federal bankruptcy judge on Friday approved a settlement agreement between US Airways [corporate website] and the Pension Benefit Guarantee Corporation [agency website] over nearly $2.7 billion in claims stemming from the airline's Chapter 11 bankruptcy. Under the approved deal, PBGC receives cash, guarantees and an ownership stake in the restructured airline to cover its claims after the airline terminated pensions [PBGC news release] for 51,000 employees in January. PBGC's claims were the last major hurdle to US Airways' emergency from bankruptcy following a merger with America West [JURIST report] expected to be completed this fall. AP has more. From usairways at vision.moundalexis.com Fri Sep 2 23:44:57 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 2 Sep 2005 19:44:57 -0400 (EDT) Subject: [US Airways] US Airways to Improve Cash Position Through Bankruptcy Court Approval of Airline Sale/Leaseback Transaction Message-ID: <20050902194329.Q673-100000@vision.moundalexis.com> 2 September 2005 ; PR Newswire US Airways to Improve Cash Position Through Bankruptcy Court Approval of Airline Sale/Leaseback Transaction http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-02-2005/0004099568&EDATE= --- ARLINGTON, Va., Sept. 2 /PRNewswire-FirstCall/ -- The U.S. Bankruptcy Court for the Eastern District of Virginia today entered an order that will allow US Airways Group, Inc. to close on its previously announced plans to sell certain Embraer regional jet aircraft and slot assets to Republic Airways Holdings. Upon closing, the transaction, expected to occur within the next two weeks, will provide US Airways with approximately $100 million in cash. US Airways also filed motions this week, and received interim approval, to sell and leaseback five Airbus A330's, nine Airbus A319's and five Airbus A320's. The sale and leaseback transactions are scheduled to be heard by the Court on Sept. 9, 2005. If approved and consummated later this month, US Airways would realize additional liquidity in excess of $120 million, bringing the total liquidity generated from aircraft transactions in connection with its emergence from Chapter 11 to approximately $300 million, which will strengthen the company's cash position as part of its proposed merger with America West Airlines. If the merger closes as planned, the new airline is expected to have approximately $2.5 billion in total cash shortly after closing, including approximately $800 million in restricted cash. "We are very pleased with the results of our asset sale programs. The additional liquidity realized from these transactions, when added to the cash being generated from other capital resources, should allow us to emerge from Chapter 11 with an even larger cash cushion than originally anticipated," said Ron Stanley, US Airways executive vice president of finance and CFO. Stanley added that these developments are extremely positive given that high fuel prices have created financial turmoil for the airline industry. The Court also approved today a deal reached between US Airways and thePension Benefit Guaranty Corp. (PBGC), resolving nearly $2.7 billion in claims. The agreement provides for US Airways to pay the PBGC $13.5 million in cash, in addition to giving the PBGC a $10 million note and 70 percent of the common stock being allocated to unsecured creditors. US Airways Group, Inc. and its domestic subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on Sept. 12, 2004. The US Airways and America West merger will create the first full-service, low-cost nationwide airline, with a pricing structure offering a network of low-fare service to over 200 cities across the U.S., Canada, Mexico, Latin America, the Caribbean and Europe, and amenities that include an extensive frequent flyer program, airport clubs, assigned seating and First Class cabin service. The airlines will operate under the US Airways brand and will be headquartered in Tempe, Ariz. The merger is expected to close in late September or early October 2005. From usairways at vision.moundalexis.com Sat Sep 3 12:36:56 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 3 Sep 2005 08:36:56 -0400 (EDT) Subject: [US Airways] US Airways building cash cushion Message-ID: <20050903083620.R673-100000@vision.moundalexis.com> 3 September 2005 ; Charlotte Observer US Airways building cash cushion http://www.charlotte.com/mld/charlotte/business/12551148.htm --- Airline will sell planes, lease them back as it moves toward merger TONY MECIA Staff Writer US Airways said Friday it plans to sell and lease back 19 planes, a move that would generate $120 million and give the airline an extra financial cushion as it seeks to merge with America West Airlines. In addition, the airline said it received court approval to sell and lease back 28 regional jets and takeoff and landing slots in Washington and New York, a previously announced deal that would raise another $100 million. Ron Stanley, the airline's chief financial officer, said the deals are necessary to help weather fuel costs, which surged again this week because of Hurricane Katrina. The airline will now "emerge from Chapter 11 with an even larger cash cushion than originally anticipated," he said. US Airways said it expects to have $2.5 billion in cash after it merges with Arizona-based America West -- a deal expected to close in about a month. The airline's largest hub will be in Charlotte. US Airways creditors, America West shareholders and a bankruptcy judge still must agree to the deal. Jet-fuel prices have risen about 20 percent this week, after some Gulf Coast refineries reported hurricane damage. Airlines have said they have trouble passing rising fuel costs along to passengers because of fierce competition. From usairways at vision.moundalexis.com Wed Sep 7 01:55:01 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 6 Sep 2005 21:55:01 -0400 (EDT) Subject: [US Airways] US Airways Reports August Traffic Message-ID: <20050906215216.N673-100000@vision.moundalexis.com> 6 September 2005 ; US Airways US Airways Reports August Traffic http://biz.yahoo.com/prnews/050906/dctu024.html?.v=25 --- ARLINGTON, Va., Sept. 6 /PRNewswire-FirstCall/ -- US Airways reported its August 2005 passenger traffic today. Mainline revenue passenger miles for August 2005 decreased 6 percent on a 3.8 percent decrease in available seat miles, compared to August 2004. The 77.3 percent passenger load factor is a 1.8 percentage point decrease compared to August 2004. Revenue passenger miles for US Airways mainline during the first eight months of 2005 increased 1.1 percent on a 0.8 percent increase in available seat miles, compared to the same period in 2004. The passenger load factor for January through August 2005 was 76.5 percent, a 0.2 percentage point increase compared to the same period in 2004. US Airways Express -- the two wholly owned subsidiaries of US Airways Group, Inc., Piedmont Airlines, Inc. and PSA, Inc., as well as the MidAtlantic Airways division of US Airways, Inc. -- reported a 52.1 percent increase in revenue passenger miles for August 2005, on 57.5 percent more capacity, compared to August 2004. The passenger load factor was 62 percent, a 2.2 percentage point decrease compared to August 2004. For the first eight months of 2005, the US Airways Express entities reported a 100.1 percent increase in revenue passenger miles on 90.9 percent more capacity, compared to the same period in 2004. The passenger load factor was 63.8 percent, a 2.9 percentage point increase compared to the same period in 2004. US Airways ended the month of August 2005 completing 98.2 percent of its scheduled departures, compared to 98 percent in August 2004. US AIRWAYS, INC. SELECTED TRAFFIC STATISTICS August August Percent 2005 2004 Change Revenue Passenger Miles (000): Domestic* 2,460,770 2,666,956 (7.7) International* 1,073,507 1,093,284 (1.8) Total -- Scheduled Service 3,534,277 3,760,240 (6.0) Total (Including Charter) 3,534,651 3,760,458 (6.0) Available Seat Miles (000): Domestic* 3,260,452 3,429,446 (4.9) International* 1,311,442 1,321,870 (0.8) Total - Scheduled Service 4,571,895 4,751,316 (3.8) Total (Including Charter) 4,572,393 4,751,602 (3.8) Passengers Boarded* 3,447,709 3,645,999 (5.4) System Load Factor* 77.3 79.1 (1.8) Average Passenger Journey* 1,025.1 1,031.3 (0.6) * scheduled service NOTE: Numbers may not add or calculate due to rounding US AIRWAYS, INC. YEAR-TO-DATE 2005 Jan.-August Jan.-August Percent 2005 2004 Change Revenue Passenger Miles (000): Domestic* 20,394,553 20,050,315 1.7 International* 7,361,812 7,412,410 (0.7) Total -- Scheduled Service 27,756,366 27,462,724 1.1 Total (Including Charter) 27,757,990 27,464,104 1.1 Available Seat Miles (000): Domestic* 26,962,920 26,575,831 1.5 International* 9,308,498 9.412,789 (1.1) Total -- Scheduled Service 36,271,419 35,988,620 0.8 Total (Including Charter) 36,273,519 35,991,541 0.8 Passengers Boarded* 28,608,126 28,430,454 0.6 System Load Factor* 76.5 76.3 0.2 Average Passenger Journey* 970.2 966.0 0.4 * scheduled service NOTE: Numbers may not add or calculate due to rounding US AIRWAYS EXPRESS** SELECTED TRAFFIC STATISTICS August August Percent 2005 2004 Change Revenue Passenger Miles (000) 313,193 205,898 52.1 Available Seat Miles (000) 505,364 320,869 57.5 Passengers Boarded* 838,048 659,032 27.2 System Load Factor* 62.0 64.2 (2.2) Average Passenger Journey 373.7 312.4 19.6 US AIRWAYS EXPRESS** YEAR-TO-DATE 2005 Jan.-August Jan.-August Percent 2005 2004 Change Revenue Passenger Miles (000) 2,377,740 1,188,396 100.1 Available Seat Miles (000) 3,724,337 1,951,283 90.9 Passengers Boarded* 6,398,635 4,490,033 42.5 System Load Factor* 63.8 60.9 2.9 Average Passenger Journey 371.6 264.7 40.4 *scheduled service ** Piedmont Airlines, Inc., PSA Airlines, Inc., and the MidAtlantic Airways division of US Airways. NOTE: Numbers may not add or calculate due to rounding Source: US Airways From usairways at vision.moundalexis.com Wed Sep 7 01:57:51 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 6 Sep 2005 21:57:51 -0400 (EDT) Subject: [US Airways] US Airways August traffic falls 6 percent Message-ID: <20050906215743.C673-100000@vision.moundalexis.com> 6 September 2005 ; Business Week Online US Airways August traffic falls 6 percent http://www.businessweek.com/ap/financialnews/D8CES9P80.htm?campaign_id=apn_home_down&chan=db --- US Airways Group Inc. on Tuesday said August passenger traffic dropped 6 percent as capacity and occupancy fell. The bankrupt airline said traffic for the month declined to 3.53 billion revenue passenger miles from 3.76 billion a year earlier. A revenue passenger mile equals one paying passenger flown one mile. Capacity fell 3.8 percent to 4.57 billion available seat miles from 4.75 billion a year ago. Occupancy, or load factor, dropped to 77.3 percent from 79.1 percent last August. Total passengers boarded in August fell 5.4 percent to 3.4 million from 3.6 million last year, the company said. US Airways said traffic for the first eight months of the year grew 1.1 percent to 27.76 billion revenue passenger miles on a 0.8 percent increase in capacity to 36.27 billion available seat miles. Load factor for the period edged up to 76.5 percent from 76.3 percent a year earlier. Total passengers boarded over the eight months rose 0.6 percent to 28.6 million from 28.4 million a year ago. US Airways shares were unchanged at 27 cents in over-the-counter trading. From usairways at vision.moundalexis.com Wed Sep 7 01:58:59 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 6 Sep 2005 21:58:59 -0400 (EDT) Subject: [US Airways] Traffic down at US Airways Message-ID: <20050906215850.L673-100000@vision.moundalexis.com> 6 September 2005 ; Philadelphia Business Journal Traffic down at US Airways http://philadelphia.bizjournals.com/philadelphia/stories/2005/09/05/daily7.html?jst=b_ln_hl --- Traffic for US Airways Group Inc., the dominant carrier at Philadelphia International Airport, fell 6 percent to 3.53 billion revenue passenger miles, the company said Tuesday. Load factor, or the percentage of a plane's seats filled with passengers, fell 1.8 percentage points to 77.3 percent, the Virginia-based airline (OTCBB:UAIRQ) said. Capacity also fell by 3.8 percent to 4.57 billion available seat miles. Meanwhile, US Airways Express -- the two wholly owned subsidiaries of US Airways Group, Inc., Piedmont Airlines, Inc. and PSA, Inc., as well as the MidAtlantic Airways division of US Airways, reported a 52.1 percent increase in revenue passenger miles for August, on 57.5 percent more capacity, compared to August 2004. US Airways ended the month of August completing 98.2 percent of its scheduled departures, compared to 98 percent in August 2004. US Airways is the dominant carrier at Philadelphia International Airport. It is attempting to reorganize to emerge from bankruptcy. From usairways at vision.moundalexis.com Wed Sep 7 02:01:26 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 6 Sep 2005 22:01:26 -0400 (EDT) Subject: [US Airways] USAirways to offer Pittsburgh-to-State College flights in October Message-ID: <20050906220002.I673-100000@vision.moundalexis.com> 6 September 2005 ; Centre Daily Times USAirways to offer Pittsburgh-to-State College flights in October http://www.centredaily.com/mld/centredaily/12573104.htm --- By Jennifer Thomas USAirways will reinstate flights to Pittsburgh from the University Park Airport beginning Oct. 13, a company employee said. For now, one non-stop flight daily has been scheduled, said David Neufer, station manager with USAir Express in the airport. More flights may soon follow. "Flight schedules are constantly being changed," he said. "I always figured there would be a time when it would be resumed." The company ended flights between University Park and Pittsburgh International Airport last November, when it cut the total number of flights into Pittsburgh by more than 100 daily. At that time, USAirways increased the number of flights between Philadelphia and University Park. "It's very surprising to me," said Charles Welch, director of the County Airport Authority. "They were so committed to not doing flights to Pittsburgh from here." From usairways at vision.moundalexis.com Wed Sep 7 02:02:44 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 6 Sep 2005 22:02:44 -0400 (EDT) Subject: [US Airways] US Airways traffic drops Message-ID: <20050906220136.S673-100000@vision.moundalexis.com> 6 September 2005 ; Charlotte Business Journal US Airways traffic drops http://charlotte.bizjournals.com/charlotte/stories/2005/09/05/daily9.html?jst=b_ln_hl --- US Airways Group Inc. says traffic fell 6 percent to 3.53 billion revenue passenger miles last month from the same period a year ago. The Virginia-based carrier's load factor, or the percentage of a plane's seats filled with passengers, dropped 1.8 percent to 77.3 percent. US Airways (OTCBB:UAIRQ), which operates its largest hub at Charlotte/Douglas International Airport, says capacity fell by 3.8 percent to 4.57 billion available seat miles. US Airways completed 98.2 percent of its scheduled departures last month, up from 98 percent in August 2004. US Airways expects to complete its $1.5 billion merger with Arizona-based America West Group Holdings Corp. in September or October. The new company will take the US Airways name and be headed by America West Chief Executive Doug Parker. US Airways CEO Bruce Lakefield will be vice chairman following the merger. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. America West (NYSE:AWA) serves more than 90 destinations in the United States, Canada, Mexico and Costa Rica. US Airways operates 34 gates at Charlotte/Douglas International Airport. From usairways at vision.moundalexis.com Wed Sep 7 12:17:48 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 7 Sep 2005 08:17:48 -0400 (EDT) Subject: [US Airways] U.S. Airways to resume direct flights to Pittsburgh Message-ID: <20050907081648.G673-100000@vision.moundalexis.com> 7 September 2005 ; Press & Sun-Bulletin U.S. Airways to resume direct flights to Pittsburgh http://www.pressconnects.com/today/news/stories/ne090705s189566.shtml --- Change requested by Binghamton travelers BY ANDREI GURUIANU U.S. Airways Express will expand its non-stop service from the Greater Binghamton Airport beginning Nov. 9. The airline, which suspended its Binghamton-to-Pittsburgh direct flights in November 2004, has decided to resume flights between the cities. "We've had many people from the community ask for the return of the Pittsburgh service," said Carl Beardsley, commissioner of aviation. Service was suspended last year when U.S. Airways made a nationwide move to concentrate on its flights to Philadelphia instead of Pittsburgh, Beardsley said. Until now, travelers flying out of Binghamton had to travel to Philadelphia or another alternate airport and then transfer if they wanted to get to Pittsburgh. U.S. Airways Express currently operates seven daily flights to Philadelphia, but none to Pittsburgh, even though it is one of the top 10 destinations for Binghamton travelers, Beardsley said. Customer feedback definitely played a role in the airline's decision to renew the route, said U.S. Airways spokeswoman Amy Kudwa. Continued demand will dictate how long the service will be offered. U.S. Airways also will offer non-stop service between the Ithaca Tompkins Regional Airport and Pittsburgh beginning Nov. 9. U.S. Airways will offer two daily non-stop flights from Binghamton to Pittsburgh, where travelers could catch connecting flights. The U.S. Airways flights will be the airport's only direct flights to Pittsburgh. The trip will be made in a 37-seat DeHavilland Dash 8 aircraft operated by Piedmont Airlines. Flights will depart from the Greater Binghamton Airport daily at 6:30 a.m. and 3:05 p.m., and depart from Pittsburgh at 1:20 p.m. and 8:30 p.m. Round trip tickets will cost approximately $250, Beardsley said. From usairways at vision.moundalexis.com Wed Sep 7 12:20:15 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 7 Sep 2005 08:20:15 -0400 (EDT) Subject: [US Airways] US Airways restores Pittsburgh connection Message-ID: <20050907081844.D673-100000@vision.moundalexis.com> 7 September 2005 ; The Ithaca Journal US Airways restores Pittsburgh connection http://www.theithacajournal.com/apps/pbcs.dll/article?AID=/20050907/NEWS01/509070324/1002 --- By ROGER DUPUIS II Journal Staff ITHACA -- Steelers fan? Got a desperate hankering for Iron City beer? Whatever their reasons, airline passengers in the Ithaca and Binghamton areas seeking a non-stop flight to Pittsburgh will have that option restored starting Nov. 9. "I am delighted to hear that US Airways will once again be serving Pittsburgh from the Ithaca Tompkins Regional Airport," said Robert Nicholas, the airport's manager. "At the time flights were discontinued last October, Pittsburgh was a very popular destination for our customers. I believe this return to Pittsburgh will be a win-win for the airline and for airport users," Nicholas added. Pittsburgh service from Ithaca and Binghamton was among a number of US Airways' flights to smaller, regional centers across the country that were dropped at a time when the company was facing serious financial difficulties. The Binghamton service ended in November. So why choose now to reinstate the flights? US Airways spokeswoman Amy Kudwa said the move came in response to feedback from customers who said they liked and wanted the service. "We'll evaluate it based on the business that it does," Kudwa said of the restored flights, although she noted that US Airways hasn't set any time limit on assessing them. "Having the additional flexibility of a fourth destination for Ithaca passengers in addition to La Guardia, Philadelphia, and Detroit will create better overall service," said Larry Baum of the Tompkins County Air Service Committee. One other factor to consider in the restoration: US Airways' merger this year with America West -- which, Kudwa noted, also has resulted in other new projects and plans for the company. The once-daily Ithaca flights from Ithaca will be provided by 35-seat Dash-8 aircraft operated by US Airways express. Binghamton will have two flights daily, operated by Piedmont Airlines. US Airways began accepting advance bookings Tuesday. From usairways at vision.moundalexis.com Wed Sep 7 23:34:30 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 7 Sep 2005 19:34:30 -0400 (EDT) Subject: [US Airways] America West, US Airways merging frequent flier plans Message-ID: <20050907193314.V673-100000@vision.moundalexis.com> 7 September 2005 ; The Business Journal of Phoenix America West, US Airways merging frequent flier plans http://phoenix.bizjournals.com/phoenix/stories/2005/09/05/daily12.html?jst=b_ln_hl --- America West Airlines and US Airways are closing in on closing their merger. The two airlines have started to release some information regarding their frequent flier plans. Starting this fall, members of US Airways Dividend Miles plan and America West's FlightFund plan can earn and redeem miles throughout the new airlines' combined route system. Next year, the miles will all be combined into a single Dividend Miles account. And the miles will not expire as long as your account is open, officials of the airlines said. America West (NYSE: AWA) shareholders will vote on the merger Sept. 13, and then US Airways (OTCBB: UAIRQ) is back in bankruptcy court for a Sept. 15 hearing. Following those approvals, and a 10-day grace period in which objections can be filed, the new US Airways will be born. The airlines speculate that "Day 1" of the merged airline could be as early as Tuesday, Sept. 27. Tempe-based America West operates more than 900 flights daily to more than 90 destinations in the United States, Canada, Mexico and Costa Rica. Arlington, Va.-based US Airways serves 183 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways, US Airways Shuttle and the US Airways Express partner carriers operate approximately 3,400 flights per day. The two airlines announced their merger plans in May. The combined airline will operate under the US Airways name, and will be based in Tempe with America West Chairman and Chief Executive Doug Parker at the helm. For more: www.americawest.com or www.usairways.com. From usairways at vision.moundalexis.com Thu Sep 8 10:43:57 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 8 Sep 2005 06:43:57 -0400 (EDT) Subject: [US Airways] No changes, yet, for US Airways workers Message-ID: <20050908064316.F673-100000@vision.moundalexis.com> 8 September 2005 ; Pittsburgh Post-Gazette No changes, yet, for US Airways workers http://www.post-gazette.com/pg/05251/567439.stm --- By Dan Fitzpatrick, Pittsburgh Post-Gazette US Airways employees will see no immediate change in pay, either up or down, as a result of the proposed merger with America West Airlines. Aware that the integration of two work forces and different cultures will be the No. 1 barrier to a successful union, America West told employees this week that all labor contracts will remain in place after the merger is complete and will remain in place for at least a year. If an employee at US Airways makes more than his or her counterpart at America West, the higher wage will be honored -- at least for awhile. Once the merger gets off the ground, the new airline also will undertake a "full analysis" of workers' contracts, policies and work rules -- a process that may result in changes for certain employees. Right now, "It's too early to say," said America West spokesman Carlo Bertolini. Pilot union officials from America West and US Airways gathered yesterday and will do so again today, in Coraopolis, to talk about how rank-and-file pilots can be protected once the merger is complete. Both are represented by the Air Line Pilots Association. Pilots at America West are worried that they may lose positions to the older, more experienced pilots at US Airways if the union combines the employees according to seniority. Barring any last-minute objections, US Airways and America West expect their merger to be done no later than Oct. 1. On Tuesday, America West shareholders will cast their votes, and the deal will come before a U.S. bankruptcy judge two days later for final approval. A 10-day grace period would follow the bankruptcy court hearing, allowing for any objections to be filed. Day one for the new US Airways could happen as early as Sept. 27. After the merger, frequent flier plans for the two airlines would be integrated, as well, with members of US Airways Dividend Miles plan and America West's FlightFund able to build miles throughout the system of the merged airline. As part of that integration, a new US Airways club will open at the Los Angeles International Airport in the coming months. From usairways at vision.moundalexis.com Fri Sep 9 11:53:25 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 9 Sep 2005 07:53:25 -0400 (EDT) Subject: [US Airways] US Airways names board Message-ID: <20050909075200.D673-100000@vision.moundalexis.com> 9 September 2005 ; The Arizona Republic US Airways names board http://www.azcentral.com/arizonarepublic/business/articles/0909realtors09.html --- 6 of 13 seats from AmWest Dawn Gilbertson The Arizona Republic Sept. 9, 2005 12:00 AM America West Airlines' name may be going away after its merger with US Airways in a few weeks, but the combined company's board of directors will have a heavy America West influence. The board for the new US Airways was named Thursday, and six of the 13 members come from America West's board. Four of US Airways' current board members are on it. The other three directors represent major investors in the merger. Boards of publicly traded companies set broad corporate policies, oversee top management and represent shareholders' interests. The new company will be based at America West's Tempe headquarters and overnight will become Arizona's second-largest public company, with about $10 billion in annual revenue. It will be the country's fifth-largest airline based on capacity. America West Chief Executive Officer Doug Parker, who will run the new US Airways, will be chairman of the board. US Airways CEO Bruce Lakefield will be vice chairman. Those positions had been previously announced. The rest of the lineup: Steven Whisler, chairman and CEO of Phoenix-based Phelps Dodge Corp.; Herbert Baum, former CEO of Scottsdale-based Dial Corp.; Richard Kraemer, former head of UDC Homes and president of Chartwell Capital Inc. in the Valley; Denise O'Leary, a private investor; and Richard Schifter, partner of Texas Pacific Group, which owns a controlling stake in America West. All are currently on America West's board. Joining from US Airways current board: Cheryl Krongard, former senior partner of Apollo Management L.P.; George Philip, executive director of the New York State Teachers' Retirement System; and Hans Mirka, former senior vice president of American Airlines' international division. The members representing new investors: Ed Shapiro, vice president and partner of PAR Capital Management; Robert Milton, chairman and CEO of Air Canada parent ACE Aviation Holdings; and Richard Barrett, managing director and principal of Resource Holdings Inc. The airlines have not yet disclosed board member compensation or any executive compensation. America West's non-employee board members received an annual retainer of $20,000, $1,000 per board or committee meeting attended, 10,000 stock options per year and free flights. Committee chairs receive additional compensation. From usairways at vision.moundalexis.com Fri Sep 9 11:55:46 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 9 Sep 2005 07:55:46 -0400 (EDT) Subject: [US Airways] Merger's effects on US Airways workers uncertain Message-ID: <20050909075444.O673-100000@vision.moundalexis.com> 9 September 2005 ; Winston-Salem Journal Merger's effects on US Airways workers uncertain http://www.journalnow.com/servlet/Satellite?pagename=WSJ%2FMGArticle%2FWSJ_BasicArticle&c=MGArticle&cid=1031784951594&path=!business!article&s=1037645507703 --- Local employees of US Airways might see division moved By Richard Craver JOURNAL REPORTER Employees at US Airways Group Inc. in Winston-Salem may be affected by the airline's proposed sale to America West Holdings Corp. US Airways has notified the 268 employees at its local revenue-accounting department that America West's system would be used if its reorganization plan is approved by a U.S. bankruptcy-court judge, Amy Kudwa, a spokeswoman for US Airways, said this week. "It's too early to determine how the decision will affect the department's employees or the timing of the system change-over," Kudwa said. The revenue-accounting employees are based in Madison Park in the northwest part of the city. They represent nearly 25 percent of US Airways' work force of 1,122 in the Triad. America West operates its revenue-accounting department near its headquarters in Tempe, Ariz. A potential final hearing on US Airways' reorganization plan is scheduled for Thursday in Washington. If Judge Stephen Mitchell approves the plan, the airline could emerge for the second time from Chapter 11 bankruptcy protection in late September and conclude its deal with America West soon afterward. As recently as August 2004, US Airways had about 1,600 employees in its local reservation and Dividend Miles centers in Winston-Salem. But that work force has since been cut to 591, the airline said. Many of the departures came from employees accepting "early out" packages as part of the airline's decision to consolidate four reservation or call centers in Winston-Salem and Pittsburgh into its center on Hanes Mall Boulevard. Under its labor agreement with the Communications Workers of America, the airline can contract out the work of any employee who voluntarily leaves the company. Another 60 employees are eligible to take the package, spokesman David Castelveter said. The package, which was offered before America West's bid, consists of a payout of up to $20,000 and other benefits. About 43 Pittsburgh employees transferred to Winston-Salem out of a potential 697. Most of those reservations jobs have been sent offshore by the airline to centers in El Salvador, Mexico and the Philippines. "The Winston-Salem reservations center will be very important to us, as we expect call volume to increase in the post-merger period," said Phil Gee, a spokesman for America West. "In the long term, nothing has been determined. It is likely to take three years before the merger is completely done, so changes will happen slowly." Castelveter said that US Airways has decided not to pursue incentive offers of up to $300,000 over three years from the Winston-Salem City Council and the Forsyth County Board of Commissioners. The boards approved the incentives in February. The boards' offer was based primarily on meeting goals for job retention of 850 jobs, as well as job creation and capital investment. The incentives would have been paid at the end of three 12-month periods. Castelveter said that because the center's work force has decreased in recent months, "it is unlikely that there will be any opportunity to collect on incentive payments." Becky Gerald, the president of CWA Local 3640, said that the union's contract with US Airways requires the airline to have a reservation center in Winston-Salem for six more years. But she said that the union might have to renegotiate the contract because of potential new ownership. From usairways at vision.moundalexis.com Fri Sep 9 22:29:46 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 9 Sep 2005 18:29:46 -0400 (EDT) Subject: [US Airways] US Airways, America West name directors Message-ID: <20050909182549.F673-100000@vision.moundalexis.com> 9 September 2005 ; Charlotte Business Journal US Airways, America West name directors http://charlotte.bizjournals.com/charlotte/stories/2005/09/05/daily32.html?jst=b_ln_hl --- US Airways Group Inc. and America West Holdings Corp. have selected the 13 board members who lead the airline after the companies merge. The board will be chaired by Doug Parker, 43, chief executive of Arizona-based American West. Bruce Lakefield, 61, CEO of US Airways will be vice chairman. Others joining from the US Airways board are Cheryl Krongard, 49, former senior partner of Apollo Management; George Philip, 58, executive director of the New York State Teachers' Retirement System; and Hans Mirka, 68, former senior vice president of American Airlines' international division. Five members of America West's board will continue as directors of the merged company. They are Herbert Baum, 68, recently retired CEO of Dial Corp.; Richard Kraemer, 62, former CEO of Chartwell Capital Inc.; Denise O'Leary, 48, a private investor in early-stage companies; Richard Schifter, 51, a partner at Texas Pacific Group; and J. Steven Whisler, 50, CEO of Phelps Dodge Corp. The board also will include three directors designated by equity investors. They are Richard Bartlett, 48, designated by Eastshore Aviation; Robert Milton, 45, designated by ACE Aviation Holdings Inc.; and Edward Shapiro, 40, designated by PAR Investment Partners. Eastshore has agreed to invest $125 million in the merged carrier, while ACE Aviation has pledged $75 million and PAR will invest $100 million. Virginia-based US Airways (OTCBB:UAIRQ) expects to complete its $1.5 billion merger with America West by the end of this month or in October. The new company will take the US Airways name, and Parker will chief executive. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. America West (NYSE:AWA) serves more than 90 destinations in the United States, Canada, Mexico and Costa Rica. US Airways is the dominant carrier at Charlotte/Douglas International Airport, operating 34 gates. Charlotte/Douglas is the airline's largest hub. From usairways at vision.moundalexis.com Fri Sep 9 22:31:37 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 9 Sep 2005 18:31:37 -0400 (EDT) Subject: [US Airways] Big week ahead for US Airways Message-ID: <20050909183054.T673-100000@vision.moundalexis.com> 9 September 2005 ; Philadelpha Business Journal Big week ahead for US Airways http://philadelphia.bizjournals.com/philadelphia/stories/2005/09/05/daily43.html?jst=b_ln_hl --- If all goes well for US Airways next week, it will be two big steps closer to emerging from bankruptcy protection. On Tuesday, America West shareholders vote on that airline's merger with US Airways. On Thursday, a bankruptcy court hearing on US Airways' reorganization plan is scheduled to begin. U.S. Bankruptcy Court Judge Stephen Mitchell will either approve or reject the plan after the hearing. If the plan is approved, US Airways expects to emerge from Chapter 11 protection at the end of this month or early October. In a message to employees Friday, US Airways CEO Bruce Lakefield praised their efforts. "In a sense, we are like a runner who is nearing the finish line after a grueling marathon. It has demanded sacrifice," his voice message said. "You have heard me say this before, and I will say it again -- your dedication and sacrifice is the reason we have been able to attract new investors." America West (NYSE: AWA) and US Airways (OTC BB: UAIRQ) announced in May a merger that would create the nation's sixth-largest airline. While the merged airline will continue to operate under the US Airways name, the corporate headquarters will be in Tempe, Ariz., America West's home base. US Airways is based in Arlington, Va. US Airways is the dominant carrier at Philadelphia International Airport. From usairways at vision.moundalexis.com Sat Sep 10 13:46:00 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 10 Sep 2005 09:46:00 -0400 (EDT) Subject: [US Airways] US Airways running on time, Lakefield says Message-ID: <20050910094325.E673-100000@vision.moundalexis.com> 10 September 2005 ; Pittsburgh Tribune-Review US Airways running on time, Lakefield says http://pittsburghlive.com/x/tribune-review/trib/newssummary/s_372684.html --- Heading into an "extremely important" week for US Airways, CEO Bruce Lakefield noted Friday that the carrier recently logged its best on-time arrival record in almost two years. Nearly 96 percent of US Airways' flights arrived on time Sept. 4, or within 14 minutes of schedule, which is how regulators define "on time." In addition, the bankrupt airline on Thursday recorded its 19th straight day of exceeding its goal of 82 percent of flights arriving on time. Next week, America West Holdings shareholders will vote on the planned merger with US Airways, US Airways creditors will vote on its reorganization plan, and a federal bankruptcy court will hold a hearing on whether to confirm the plan. From usairways at vision.moundalexis.com Sun Sep 11 13:36:51 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 11 Sep 2005 09:36:51 -0400 (EDT) Subject: [US Airways] US Airways doubters eat their words Message-ID: <20050911093524.A673-100000@vision.moundalexis.com> 11 September 2005 ; Pittsburgh Post-Gazette US Airways doubters eat their words http://www.post-gazette.com/pg/05254/568969.stm --- By Dan Fitzpatrick, Pittsburgh Post-Gazette Terry Trippler, an often-quoted airline analyst, boldly predicted the end of US Airways in December 2004, telling the traveling public to "stick a fork in them, folks. They're done." Nine months later, the twice-bankrupt airline is far from cooked. "I was wrong," Trippler now admits. "I wrote them off. But this is why they are the most determined group of survivors I have ever seen. ... This airline deserves to succeed because they fought back." The long-sought happy ending for US Airways could come this week, as it seeks final approvals for a merger with the smaller, younger and more profitable America West Airlines, in Tempe, Ariz. On Tuesday, America West shareholders will cast their votes from Tempe, and on Thursday, the deal will come before U.S. Bankruptcy Court Judge Stephen Mitchell in Alexandria, Va. Mitchell has the final word on whether the merger makes sense and whether US Airways should be allowed to exit Chapter 11 bankruptcy for the second time in three years. If Mitchell gives the go-ahead, the new airline -- still named US Airways -- officially would take off no later than Oct. 1. It would do so with $2.5 billion in cash, more than 40,000 employees and routes covering more than 200 cities in the United States, Mexico, Latin America, the Caribbean and Europe. Savings resulting from the merger -- including concessions from workers, cuts in expenses and reductions in unprofitable flying -- are expected to enable the airline to compete with aggressive low-cost carriers such as Southwest Airlines and JetBlue Airways. But it also plans to keep some of the perks of an older-line carrier, such as airport clubs and first-class seating. "I think we have the makings of the airline of the future," said Trippler, the Minneapolis-based airline expert with Cheapseats.com. It is a future that has come at a steep cost to the Pittsburgh region, the area hardest hit by US Airways' struggle for survival. Over the last four years, US Airways stripped Pittsburgh of its hub status and took away 332 daily flights in four years, leaving 210. It also cut more than 9,000 local jobs, going from a high of 12,700 before the 9/11 terrorist attacks four years ago today -- an event that crippled the airline industry and forced US Airways and other carriers into bankruptcy -- to a current total of 3,460. The best news for people still lucky enough to have their jobs is that the airline has a partner in America West that is willing to keep people and assets, instead of liquidating both. But it is important to remember that the merger with America West does not guarantee US Airways' survival, either. Sky-high oil prices are forcing many carriers, including US Airways, to pay more for fuel than they do for labor, typically an airline's No. 1 expense. Fares have been going up as airlines try to pass on some of the costs, and traffic is up, too. But as long as fuel stays this high, the new US Airways will be hard pressed to make consistent profits, despite cutting more than $2 billion in annual labor costs through two bankruptcies. The new US Airways also will face intense competition up and down the East Coast and out West from low-cost leader Southwest, the one carrier able to withstand high energy costs due to an aggressive hedging program that purchased fuel at cheap prices far in advance. Southwest has major operations in Phoenix and Las Vegas, two America West hubs, and in the last year it launched new service from US Airways strongholds Philadelphia and Pittsburgh It is a "very inauspicious time to be launching this merger," said Bill Warlick, an airlines analyst with Fitch Ratings in Chicago. US Airways was quicker than most old mainline carriers to realize the need to get its costs down to compete with the newer, more efficient low-cost carriers that now represent nearly a third of the industry's capacity. Indeed, United is still months away from exiting bankruptcy, and both Delta Air Lines and Northwest Airlines, struggling to get their costs down, have been threatening to enter Chapter 11. Northwest has some difficult labor issues, too: its mechanics are in the midst of a three-week-long strike. US Airways claims it needs the merger to achieve a position of strength it could not have achieved on its own. The combination will spread the airline's costs over a wider revenue base -- $10 billion -- and result in a closing of US Airways' Arlington, Va., headquarters and reductions in unprofitable flights and older planes. But analysts are split on whether the US Airways-America West merger and its faster action on costs will make things much better for the new airline. Warlick, while crediting US Airways for doing "a better job of anticipating changes that were under way," is pessimistic because the new carrier is still relying on "markets under tremendous pressure from low-cost carriers." Marshall, Va., airline consultant Darryl Jenkins is even more doubtful that this merger -- or others that observers speculate will occur -- would solve the problems of US Airways or the rest of the industry. Airline mergers, he noted, "have no record of reducing costs. If they do reduce their costs, it would be like the first time ever. The airline industry has this awful record of mergers, but people still want to do them." Nonetheless, the US Airways-America West merger "has as good a chance of any I have ever seen." Unlike past airline mergers that often took the best of labor contracts to win peace and get combinations through, the US Airways-America West merger comes as both carriers pared work forces and capacity following 9/11 and, in the case of US Airways, slashed pay and benefits prior to the merger. "As long as investors are willing to stay on board, this company could have enough cash to make a go of it for a while," Warlick said. Many analysts are predicting that the US Airways-America West union will be the first of many as the airline industry looks for ways to survive the high oil prices and make money again. Some possible combinations: + Delta and Northwest. The nation's No. 3 and No. 4 carriers are near bankruptcy and both need to lower their costs to compete. They also complement each other well, with Northwest strongest going east-west in the United States and then across the Pacific Ocean while Delta is strongest going north-south in the United States and then across the Atlantic Ocean. "It would be a hell of an airline," Trippler said. + United Airlines and Continental Airlines. United, the No. 2 domestic carrier, has the strongest network in the West but lacks a dominant presence in the East. It has been in bankruptcy for three years and now claims it will re-emerge in February. No. 5 carrier Continental, which has a large operation in New York, could complement United nicely. "Those two could make sense," Warlick said. "The problem is, who has the balance sheet and the financing to pull that off." Added Trippler: "Does Continental want to buy United? I don't know. I don't see it." + American Airlines and Northwest. American, the No. 1 carrier, has lots of cash -- $4 billion to be exact. A union of American and Northwest has been talked about within the industry, Trippler said, but "no two airlines hate each other more than American and Northwest." American once made a bid for Northwest, but Northwest rejected it. Also, American had a bad experience merging with TWA in 2001. It may not want to take on another challenge so soon. The names involved may change, but many expect the airline industry to eventually shrink down to three super-large carriers, via mergers or liquidations. Delta and Northwest are the most vulnerable at the moment, along with United. "I think some of these carriers can still make it," Trippler said, as long as they act aggressively to mimic the best practices of low-cost competitors. Delta did that last week when it announced 1,000 more job cuts, a reduction of service at its Cincinnati hub and the sale of 11 older jets. "You are seeing things happening you never saw before," Trippler said. Older carriers "are now starting to take a page out of the success of low-cost carriers. Forget market share. If a plane or route is not making money, 'we will pull it.' " US Airways was among the first to embrace that strategy and put it into practice, starting with its first bankruptcy in 2002. But experts had problems believing it would pull through. Back in December 2004, when the airline scrambled to recover from a Christmas holiday meltdown across its system, especially at Philadelphia International Airport, "I would have bet the rent they were done," Trippler said. He felt comfortable enough at the time to say: "Stick a fork in them, folks." The comment was printed in newspapers around the world A few months later, when it appeared that US Airways would make it, US Airways senior vice president Chris Chiames sent Trippler a plastic fork and attached a note: "Here is something you can use to eat your words." Trippler had the fork framed -- it now hangs on the wall of his Minneapolis office. "Smarter people would have quit a long time ago," he said. "The people of US Airways deserve to succeed through this merger. They earned it." From usairways at vision.moundalexis.com Sun Sep 11 13:38:11 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 11 Sep 2005 09:38:11 -0400 (EDT) Subject: [US Airways] US Airways to resume Ithaca to Pittsburgh flights this fall Message-ID: <20050911093708.X673-100000@vision.moundalexis.com> 10 September 2005 ; 14850 Today US Airways to resume Ithaca to Pittsburgh flights this fall http://today.14850.com/0910usairways.html --- by Mark H. Anbinder, WVBR News Ithaca, 10 September 05 -- Tompkins County announced this week that US Airways, one of two commercial carriers operating at the Ithaca Tompkins Regional Airport, would soon resume daily flights between Ithaca and Pittsburgh. Ithaca was one of some 20 smaller airports whose service to Pittsburgh was eliminated last year when US Airways decided to focus its hub operations at Philadelphia's airport. Both Ithaca and Binghamton are regaining service to Pittsburgh on November 9th, using DeHavilland Dash-8 turboprop planes. Binghamton will have two daily flights in each direction, and Ithaca will have just one, a 1:20pm flight from Pittsburgh to Ithaca arriving at 2:35, and a 3:00pm flight from Ithaca to Pittsburgh arriving at 4:20. A late-afternoon flight may not make Pittsburgh a desirable hub for Ithaca passengers continuing with flights to the west coast, but Northwest's daily flights to Detroit will continue to be attractive for westbound travelers. Since discontinuing flights between Ithaca and Pittsburgh last fall, US Airways has operated multiple flights a day from Ithaca to New York's LaGuardia Airport and to Philadelphia International Airport. One frequent comment the airline received from travelers was that flying east to New York or Philadelphia en route to the west coast was inefficient. Tickets for the flights between Ithaca and Pittsburgh, to begin November 9th, are available for sale immediately. From usairways at vision.moundalexis.com Sun Sep 11 22:14:41 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 11 Sep 2005 18:14:41 -0400 (EDT) Subject: [US Airways] America West, US Airways set to combine Message-ID: <20050911181306.J673-100000@vision.moundalexis.com> 11 September 2005 ; The Mercury News America West, US Airways set to combine http://www.mercurynews.com/mld/mercurynews/news/breaking_news/12619549.htm --- BETH DeFALCO Associated Press PHOENIX - As America West Airlines and US Airways approach the final milestones on the path to their planned combination, officials say the two companies could start operating as one by the beginning of October. To complete the merger, shareholders of America West Holdings Corp., the parent of Tempe, Ariz.-based America West Airlines, will vote Tuesday on whether to approve the company's union with bankrupt US Airways Group Inc. US Airways' unsecured creditors, a key party in the case, have already given a thumbs-up. Then on Thursday, U.S. Bankruptcy Judge Stephen Mitchell will hold a hearing in Virginia to consider final court approval of the US Airways reorganization plan, the centerpiece of which is its proposed union with America West. The goal is to form a stronger airline that would compete better with lower-cost rivals such as Southwest Airlines Inc. and JetBlue Airways Corp. If both shareholders and the bankruptcy court approve the corporate marriage, customers will begin to see image changes almost immediately, airline officials said. However, flight crews, maintenance and safety procedures for each airline will remain separate for some time. "All the training manuals, policies, all of that has to be consolidated into one program and approved by the FAA. And that doesn't happen overnight," said US Airways spokesman Dave Castelveter, noting it could take up to two years to fully merge operations. "It should be seamless to the customer though," he added. "They shouldn't notice whether the airplane is being flown by an America West pilot or a US Airways one." Soon after America West acquires US Airways, frequent flier miles accumulated at one airline will apply to the other carrier, America West spokesman Carlo Bertolini said. Even though America West is the acquiring airline, the US Airways name will survive and be used when the nation's seventh- and eighth-largest carriers combine to create the No. 6 airline in terms of passenger miles, an industry measure. The deal will be funded by $1.5 billion in new capital from a variety of investors, including aircraft maker Airbus. Anticipating full approval, a new board has been named for the new US Airways. Of the 13 members, six come from America West's board, four are from US Airways' current board and the other three directors represent major investors in the merger. The combined airline's headquarters will be in Tempe, and America West CEO Doug Parker will be chief executive . The new combined airline is expected to start reaping financial benefits from the merger fairly soon, especially once overhead cost cutting begins, said airline analyst Ray Neidl of Calyon Securities. "It's all going through on schedule," Neidl said. "The big question is can they make it work post-merger." The transition could be turbulent for employees as the new company looks to cut overhead, said Neidl. Though the combined airline plans to cut 51 jets from its fleet, line jobs such as baggage handlers and flight attendants were expected to stay at similar levels, Neidl said. He said redundant staff and management jobs will likely be the first on the chopping block. "There will be a little bit of shrinking, but we hope to accomplish a lot of that through attrition," Bertolini said. "That's still an ongoing process." America West pilots are especially concerned about the merger since they are significantly junior in seniority to US Airways pilots. The airlines have left it to the unions to work out the seniority kinks. The America West Air Line Pilots Association declined to comment on what progress, if any, the union had made toward ensuring their pilots' job security. From usairways at vision.moundalexis.com Tue Sep 13 12:25:16 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 08:25:16 -0400 (EDT) Subject: [US Airways] US Airways Adds Flights, Providing More Seat Capacity for High Point Furniture Market Message-ID: <20050913082355.N673-100000@vision.moundalexis.com> 12 September 2005 ; PR Newswire US Airways Adds Flights, Providing More Seat Capacity for High Point Furniture Market http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-12-2005/0004105094&EDATE= --- ARLINGTON, Va., Sept. 12 /PRNewswire-FirstCall/ -- US Airways will add an average of six daily roundtrip flights and operate larger aircraft to and from the Greensboro/High Point Regional Airport from Oct. 16-25, 2005, to accommodate customers attending the annual International Home Furnishings Market in High Point, N.C. US Airways will add two daily flights to Greensboro from both New York (LaGuardia) and Pittsburgh, as well as one additional flight from Philadelphia. From Philadelphia, US Airways will also upgrade existing 50-seat regional jet service to larger aircraft, including 120-seat Airbus A319 and 126-seat Boeing 737-300 aircraft, which will add 218 daily seats to the route. >From Charlotte, N.C., US Airways will upgrade its nine daily flights to larger aircraft, increasing capacity by 244 seats each way. Operating between Charlotte and Greensboro during this time will be a 70-seat Canadair RJ 700, one Boeing 737-300 and four 144-seat 737-400 aircraft. US Airways and US Airways Express currently operate 30 daily flights from Greensboro. From usairways at vision.moundalexis.com Tue Sep 13 12:26:28 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 08:26:28 -0400 (EDT) Subject: [US Airways] US Airways adds flights from Pittsburgh Message-ID: <20050913082517.V673-100000@vision.moundalexis.com> 12 September 2005 ; Pittsburgh Business Times US Airways adds flights from Pittsburgh http://pittsburgh.bizjournals.com/pittsburgh/stories/2005/09/12/daily3.html?jst=b_ln_hl --- US Airways Group Inc. will add an average of six daily roundtrip flights and operate larger aircraft to and from the Greensboro/High Point Regional Airport from Oct. 16-25 for the International Home Furnishings Market in High Point, N.C. The Arlington, Va.-based airline (OTCBB:UAIRQ), which hopes to complete a merger with America West shortly, will add two daily flights to Greensboro from both LaGuardia Airport in New York and Pittsburgh, as well as one additional flight from Philadelphia. >From Philadelphia, US Airways will also upgrade existing 50-seat regional jet service to larger aircraft, including 120-seat Airbus A319 and 126-seat Boeing 737-300 aircraft, which will add 218 daily seats to the route. >From Charlotte, N.C., US Airways will upgrade its nine daily flights to larger aircraft, increasing capacity by 244 seats each way. Operating between Charlotte and Greensboro during this time will be a 70-seat Canadair RJ 700, one Boeing 737-300 and four 144-seat 737-400 aircraft. US Airways and US Airways Express currently operate 30 daily flights from Greensboro. Also Monday, US Airways said it would restore flights from Pittsburgh to State College and three cities in upstate New York. Daily flights to State College begin Oct. 13; flights to Ithaca, N.Y., begin Nov. 9. Also that day, the airline plans to add a flight to Johnstown and White Plains, N.Y., giving each city four a day. Allegheny County chief executive Dan Onorato said it was "great news for business travelers who conduct business in Pittsburgh. It is an indication that Pittsburgh continues to hold an important role in US Airways." From usairways at vision.moundalexis.com Tue Sep 13 12:27:34 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 08:27:34 -0400 (EDT) Subject: [US Airways] America West Shareholders To Vote On US Airways Merger Message-ID: <20050913082629.B673-100000@vision.moundalexis.com> 12 September 2005 ; KDKA, Pittsburgh America West Shareholders To Vote On US Airways Merger http://kdka.com/local/local_story_255114842.html --- Pheonix, AZ (AP) America West shareholders will vote tomorrow on whether to approve the company's merger with bankrupt US Airways Group. US Airways' unsecured creditors have already approved the merger. US Bankruptcy Judge Stephen Mitchell will hold a hearing in Virginia on Thursday to consider final court approval of the US Airways reorganization plan, the centerpiece of which is its proposed union with America West. Officials say America West Airlines and Arlington-based US Airways could start operating as one company by the beginning of next month. From usairways at vision.moundalexis.com Tue Sep 13 12:28:21 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 08:28:21 -0400 (EDT) Subject: [US Airways] US Airways tries niche flight schedules for trade show event Message-ID: <20050913082734.O673-100000@vision.moundalexis.com> 12 September 2005 ; Washington Business Journal US Airways tries niche flight schedules for trade show event http://washington.bizjournals.com/washington/stories/2005/09/12/daily8.html?jst=b_ln_hl --- Barton Eckert Contributing Writer With US Airways in the final steps of its merger plans with America West (NYSE: AWA), the carrier is taking a stab at what could be called "niche scheduling." With a large furniture industry trade show coming up in High Point, N.C., Arlington-based US Airways (OTCBB: UAIRQ) is piling on more flights and seat capacity to Greensboro/High Point Regional Airport from Oct. 15 through 25. The airline wants to attract customers headed to the annual International Home Furnishings Market Show. US Airways will add two daily flights to Greensboro from both New York (LaGuardia) and Pittsburgh, as well as one additional flight from Philadelphia. >From Philadelphia, US Airways will upgrade existing 50-seat regional jet service to larger aircraft, including 120-seat Airbus A319 and 126-seat Boeing 737-300 aircraft, which will add 218 daily seats to the route. >From Charlotte, N.C., US Airways will upgrade its nine daily flights to larger aircraft, increasing capacity by 244 seats each way. Operating between Charlotte and Greensboro during this time will be a 70-seat Canadair RJ 700, one Boeing 737-300 and four 144-seat 737-400 aircraft. US Airways and US Airways Express currently operate 30 daily flights from Greensboro. From usairways at vision.moundalexis.com Tue Sep 13 12:29:42 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 08:29:42 -0400 (EDT) Subject: [US Airways] Unions oppose executive incentive plan at USAir Message-ID: <20050913082821.U673-100000@vision.moundalexis.com> 12 September 2005 ; Reuters Unions oppose executive incentive plan at USAir http://today.reuters.com/business/newsArticle.aspx?type=ousiv&storyID=2005-09-13T002649Z_01_FLE301590_RTRIDST_0_BUSINESSPRO-AIRLINES-USAIRWAYS-DC.XML --- WASHINGTON (Reuters) - Flight attendants and mechanics, angry over a proposed incentive plan for senior executives at US Airways (UAIRQ.OB), said on Monday they would oppose the airline's emergence from bankruptcy and its planned merger with America West Airlines (AWA.N). The unions say the proposal, which would establish an equity incentive plan, was unfair to thousands of union and nonunion workers who took substantial pay, benefit and pension cuts to see the airline through its restructuring. "The (company's) proposed plan provides a windfall to their senior executives that is extremely difficult to square with the rhetoric of 'shared sacrifice' uttered by the (company) throughout this bankruptcy," the International Association of Machinists said in a court filing. A US Airways spokesman declined to comment on the objections other than to say the matter would be addressed by the bankruptcy court. Roughly two dozen top executives could be eligible for bonuses, stock appreciation rights and other stock awards if they stick with the airline through the merger, union officials said. US Airways and America West hope to close the deal within the coming weeks. The unions will formally raise their objections on Thursday at a hearing on US Airways' bankruptcy reorganization plan and its proposed merger in federal bankruptcy court in Alexandria, Virginia. America West shareholders are scheduled to vote on the proposal on Tuesday. Stephen Mitchell, the judge overseeing US Airways' bankruptcy, rejected the incentive plan for officers at an earlier hearing but permitted the company to offer another rewards program to help ensure that less senior management and other salaried employees would stay on until they were no longer needed. Mitchell said at the time US Airways could try again to push through the senior executive incentive this week, but did not indicate whether he would accept the proposal. US Airways says it has lost numerous senior executives as the company reorganized its finances during its year-long trip through Chapter 11, and says it cannot complete the deal with America West without senior officers helping to manage the transition. Most of the senior positions at the merged airline, which will also be called US Airways, will be held by America West executives. From usairways at vision.moundalexis.com Tue Sep 13 12:30:31 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 08:30:31 -0400 (EDT) Subject: [US Airways] Teamsters, CWA plan to form new US Airways union Message-ID: <20050913082942.M673-100000@vision.moundalexis.com> 13 September 2005 ; Pittsburgh Tribune-Review Teamsters, CWA plan to form new US Airways union http://pittsburghlive.com/x/tribune-review/trib/newssummary/s_373466.html --- A new union has been proposed -- the Airline Customer Service Employee Association -- to represent workers at US Airways and America West Airlines, once they merge. The combination was crafted Monday by the International Brotherhood of Teamsters and the Communications Workers of America. Their members will vote on the new association in the coming weeks, said a union official. The CWA represents about 6,000 ticket, gate and customer-service agents at US Airways, including about 210 in Pittsburgh. The Teamsters represent about 3,500 such workers at America West. The two airlines expect to close their merger on or about Sept. 27. The CWA's current contract will remain in force temporarily, while the Teamsters, which began representing the America West workers last year, recently began negotiating a new pact. From usairways at vision.moundalexis.com Tue Sep 13 12:31:52 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 08:31:52 -0400 (EDT) Subject: [US Airways] In rare move, US Airways adding flights Message-ID: <20050913083032.J673-100000@vision.moundalexis.com> 13 September 2005 ; Pittsburgh Post Gazette In rare move, US Airways adding flights http://www.post-gazette.com/pg/05256/570312.stm --- But airline also will cut nonstop service to three cities Nov. 9 By Mark Belko, Pittsburgh Post-Gazette For the last four years, local officials have watched helplessly as US Airways cut flight after flight after flight -- hundreds in all -- at Pittsburgh International Airport. But yesterday, they finally got a bit of good news. The region's dominant carrier will be restoring nonstop service to State College and three New York cities -- Binghamton, Ithaca and Elmira -- over the next two months. US Airways spokeswoman Amy Kudwa said the flights were restored in part because travelers from those cities did not like connecting through Philadelphia, where the airline has been concentrating service at the expense of Pittsburgh. "We've heard anecdotally from customers in these cities that they like the Pittsburgh connection, so we're adding these flights back to see how they respond," she said. But even as the airport gains service on one hand, it will be losing it on the other. Starting Nov. 9, US Airways will be eliminating nonstop service to Altoona, Nashville, Tenn., and Dayton, Ohio, Kudwa said. The New York and State College trips are the first flights to be added by US Airways at the airport since last spring. It was not immediately known when the airline last added destinations. It eliminated Pittsburgh as a hub and reclassified it as a "focus city" last November. "I think it's fabulous. It shows that there's demand to connect through Pittsburgh," Allegheny County Airport Authority spokeswoman JoAnn Jenny said of the restored service. Starting Oct. 13, US Airways will serve State College with one daily nonstop flight. On Nov. 9, it will start one flight a day to Ithaca and two a day to both Binghamton and Elmira. Before the flights were cut last fall, US Airways offered three flights a day to Elmira and Ithaca and four a day to Binghamton and State College. "I think it is an important turn of events for us as well as for the airline and those airports in New York and State College," Airport Authority Executive Director Kent George said. On Nov. 9, US Airways also will increase the number of daily flights to Johnstown and White Plains, N.Y., from three to four. When all is said and done, US Airways, as of Nov. 9, will have 206 daily flights out of Pittsburgh, down five from the current 211. From usairways at vision.moundalexis.com Tue Sep 13 23:30:58 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 19:30:58 -0400 (EDT) Subject: [US Airways] US Airways unions agree on representation Message-ID: <20050913193004.C673-100000@vision.moundalexis.com> 13 September 2005 ; Charlotte Business Journal US Airways unions agree on representation http://charlotte.bizjournals.com/charlotte/stories/2005/09/12/daily15.html?jst=b_ln_hl --- The Communications Workers of America and the International Brotherhood of Teamsters have agreed to jointly represent passenger-service agents of the new US Airways when the merger of America West Holdings Corp. and US Airways Group Inc. is completed. The proposal to create a new Airline Customer Service Employee Association-IBT/CWA will be presented to members of the two unions for their approval, say Teamsters President James Hoffa and CWA President Larry Cohen. CWA represents 6,000 passenger agents at US Airways (OTCBB:UAIRQ), and IBT represents 3,500 agents at America West (NYSE:AWA). The employees work as reservations, ticket and gate agents, and also staff hospitality clubs at airports and assist handicapped passengers. "By working together, we can build a strong, unified passenger-service group and protect and improve conditions for employees that both unions represent at US Airways," CWA's Cohen says in a prepared statement. Adds Hoffa: "As the industry endures continued economic uncertainty, this agreement will ensure that nearly 10,000 workers are united in their fight for fair treatment and job security." CWA has a contract at US Airways whose conditions remain in effect, while the Teamsters are bargaining for a first contract at America West, where employees unionized last year. CWA will continue to represent workers in eastern US Airways locations, and the Teamsters will represent those in the Western states, where America West primarily operates. The pact calls for the presidents of the two unions to alternate in heading the association, with Cohen serving as director for the first year and Hoffa as vice director. CWA and IBT will designate an equal number of representatives to form a US Airways Representation Committee. All policy questions must be jointly approved, under the agreement. Virginia-based US Airways, the nation's seventh-largest airline, filed for bankruptcy protection last year. The company, which operates its largest hub at Charlotte/Douglas International Airport, expects to complete its $1.5 billion merger with Arizona-based America West this month or next. The combination of US Airways and America West will form a carrier that will rival Dallas-based Southwest Airlines Co. (NYSE:LUV) in size, with a wide choice of routes. The new company will take the US Airways name and be headed by America West Chief Executive Doug Parker. US Airways CEO Bruce Lakefield will be vice chairman following the merger. From usairways at vision.moundalexis.com Tue Sep 13 23:33:26 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 19:33:26 -0400 (EDT) Subject: [US Airways] America West shareholders approve proposed merger with U.S. Airways Message-ID: <20050913193222.K673-100000@vision.moundalexis.com> 13 September 2005 ; San Diego Union-Tribune America West shareholders approve proposed merger with U.S. Airways http://www.signonsandiego.com/news/business/20050913-1109-americawest-usairways.html --- By Jacques Billeaud ASSOCIATED PRESS 11:09 a.m. September 13, 2005 TEMPE, Ariz. -- Shareholders of America West Airlines' parent company on Tuesday approved the carrier's proposed merger with US Airways, one of the last milestones in the plan to wed the two geographically distinct airlines. America West Holdings Corp. said nearly 96 percent of the total voting shares favored the deal. Later this week, the bankruptcy judge overseeing US Airways Group Inc.'s bankruptcy case will hold a hearing in Virginia to consider final court approval of that carrier's reorganization plan, the centerpiece of which is its proposed union with America West. "Today's results reflect overwhelming support for our proposed merger with US Airways, which will create a stronger airline that offers improved job stability for our employees, expanded service for our customers and a more long-term, viable investment for our stockholders," said Doug Parker, America West's chairman, president and chief executive. Parker will serve as chief executive of the combined airline. Parker said in a news release that he anticipates closing the deal as scheduled in late September. Officials say the two companies could start operating as one by the beginning of October. The goal is to form a stronger airline that would compete better with lower-cost rivals such as Southwest Airlines Inc. and JetBlue Airways Corp. Arlington, Va.-based US Airways has a strong presence on the East Coast and in the Caribbean. America West, based in Tempe, operates across the West from hubs in Phoenix and Las Vegas. Even though America West is considered the financially stronger company, the US Airways name will survive and be used when the nation's seventh- and eighth-largest carriers are combined to create the No. 6 airline. The deal will be funded by $1.5 billion in new capital from a variety of investors, including the European aircraft maker Airbus. If the bankruptcy court approves the merger, customers will begin to see image changes almost immediately, airline officials have said. But flight crews, maintenance and safety procedures for each airline will remain separate for some time. The airlines say soon after the merger, frequent flier miles accumulated at one airline will apply to the other carrier. The combined airline's headquarters will be in Tempe. America West shares fell 11 cents to $7.21 in afternoon trading on the New York Stock Exchange. From usairways at vision.moundalexis.com Tue Sep 13 23:34:29 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 19:34:29 -0400 (EDT) Subject: [US Airways] Shareholders approve merger with US Airways Message-ID: <20050913193356.T673-100000@vision.moundalexis.com> 13 September 2005 ; Capital News 9 Shareholders approve merger with US Airways http://www.capitalnews9.com/content/top_stories/default.asp?ArID=148987 --- Shareholders of America West Airlines' parent company have approved the carrier's proposed merger with US Airways. The final hurdle for the deal comes later this week, when the bankruptcy judge overseeing the US Airways bankruptcy case will hold a hearing in Virginia. He'll consider final court approval of that carrier's reorganization plan, which features the proposed union with America West Holdings as its centerpiece. America West chairman, president and chief executive Doug Parker said he expects the deal to close as scheduled late this month. Parker will serve as chief executive of the combined airline. From usairways at vision.moundalexis.com Tue Sep 13 23:35:16 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 19:35:16 -0400 (EDT) Subject: [US Airways] America West Shareholders Approve Proposed Merger With US Airways Message-ID: <20050913193430.X673-100000@vision.moundalexis.com> 13 September 2005 ; The Conservative Voice America West Shareholders Approve Proposed Merger With US Airways http://www.theconservativevoice.com/ap/article.html?mi=D8CJGOMO5&apc=9004 --- Shareholders of America West Airlines' parent company voted Tuesday to approved the carrier's proposed merger with US Airways, one of the last hurdles in the plan to wed the two geographically distinct airlines. Later this week, the bankruptcy judge overseeing US Airways' bankruptcy case will hold a hearing in Virginia to consider final court approval of the carrier's reorganization plan, the centerpiece of which is its proposed union with America West. From usairways at vision.moundalexis.com Tue Sep 13 23:36:58 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 19:36:58 -0400 (EDT) Subject: [US Airways] US Airways Moves Toward Merger Message-ID: <20050913193611.J673-100000@vision.moundalexis.com> 13 September 2005 ; The Washington Post US Airways Moves Toward Merger http://www.washingtonpost.com/wp-dyn/content/article/2005/09/11/AR2005091100831.html --- America West Shareholders to Vote on Deal to Combine Airlines By Keith L. Alexander Washington Post Staff Writer Monday, September 12, 2005; Page D01 US Airways Group Inc. could learn as early as Friday if its planned merger with America West Airlines will go through without further obstacles. Tomorrow, shareholders of America West Holdings Co., the airline's parent, are expected to vote on the planned merger at a meeting at the company's Tempe, Ariz. headquarters. On Thursday, a bankruptcy court judge in Alexandria is expected to hear final comments on US Airways' reorganization plan. The airline has operated under Chapter 11 bankruptcy protection since September 2004, and its plan to emerge now centers on the merger with America West. The hearing could last through Friday, and it will provide a forum for US Airways unions or creditors to voice any remaining objections to the merger. A 10-day grace period after the hearings would allow any of US Airways' creditors to file formal objections to the plan. If the merger receives approval from America West shareholders and the bankruptcy court, as industry insiders expect, all that would remain is for the two airlines to finish the paperwork on the deal. The merged airline's first day of operation could come as early as Sept. 27, said J. Scott Kirby, America West's executive vice president of sales and marketing. Kirby is the lead organizer of the merger team. The new airline will retain the name US Airways and be led mostly by America West executives, including president and chief executive W. Douglas Parker. The merger, announced in May, would create the nation's largest budget airline, with service through much of the U.S. mainland, Hawaii and the Caribbean. Both airlines cleared their biggest hurdles earlier this summer when the Justice Department and the Air Transportation Stabilization Board, the federal board that holds about $1 billion in loans for both airlines, approved the deal. In the meantime, the new airline is preparing for the operational equivalent of slight turbulence as it begins merging the functions of two well-established carriers. "On day one, we won't have a completely seamless process across the board. It may take a few weeks," Kirby said. "But we ask our passengers to bear with us." The airline plans to have extra employees on hand to answer customer queries, including whether they should go to an America West or US Airways gate when they arrive at the airport. Initially, separate schedules and gates will be maintained. Interim signs that include both the US Airways and America West names will begin going up at airports around the country, including Washington's Reagan National Airport. Synchronizing the booking capabilities of both airlines' Web sites also will take some time. Kirby said, for example, that for at least several weeks America West frequent fliers hoping to redeem a free trip on a US Airways route would have to call a reservation agent, rather than booking the trip on the Web. Both airlines said they expect to retain most of the workers based at the three Washington area airports. Yet it has become increasingly clear that the Washington area will lose all but a handful of the approximately 600 jobs now at the US Airways corporate headquarters in Crystal City. Kirby said the airline plans to retain only a "small" lobbying office. The number of corporate employees who will remain with the airline, Kirby said, "depends on how many are willing to move to Tempe." Kirby said the airline plans to heavily market to frequent fliers of both airlines through e-mails as early as Sept. 15. Last week, in an e-mail to frequent fliers, the airlines reminded members that they soon will be able to earn and redeem miles on both airlines and that current US Airways airport club members will have access to the America West clubs in Phoenix and Las Vegas as well as a new club that is being completed at Los Angeles International Airport. To ease into the merger, the new US Airways will continue to operate in many ways as if it were two separate airlines for about two years. It will take that long, for example, to repaint all planes in their revamped US Airways colors. Current US Airways mechanics will continue to work on the planes they have serviced in the past, as will current America West mechanics. That will minimize the conflicts and confusion involved in merging separate employee seniority lists, one of the biggest hurdles in an airline merger. The rationale behind the merger is that the combined airline will have a formidable network. America West is stronger in travel from East Coast to Western destinations such as Las Vegas and Phoenix, while US Airways is focused heavily along the East Coast with hubs in Philadelphia and Charlotte, N.C., as well as its New York and Boston shuttles. But industry analysts said the new US Airways is debuting at a difficult time. Fuel prices are reaching record highs, and the industry is entering its weaker fall and winter travel periods. Michael Boyd, who leads the Boyd Group, an Evergreen, Colo.-based aviation consulting firm, said executives of the airline may have to trim its routes along the East Coast to keep costs down. Boyd said the East Coast has become dominated by low-fare, low-cost carrier such as Southwest, Air Tran and JetBlue. "They have to recast what they're doing on the East Coast because it doesn't work any more," Boyd said. "They have to shove more of their flights to feed their East to West traffic and less flights between North to South traffic." Kirby said the airline does not plan on eliminating any destinations beyond the 12 to 13 percent flight reduction that it announced earlier this summer. But he said the airline is considering eliminating some of its less popular flights, such as those early in the morning or late at night, particularly between September and December. "There are no drastic changes in the business plans that we have already filed," Kirby said. From usairways at vision.moundalexis.com Tue Sep 13 23:37:44 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 19:37:44 -0400 (EDT) Subject: [US Airways] America West stockholders say OK to US Airways merger Message-ID: <20050913193659.S673-100000@vision.moundalexis.com> 13 September 2005 ; The Business Review (Albany) America West stockholders say OK to US Airways merger http://albany.bizjournals.com/albany/stories/2005/09/12/daily19.html?jst=b_ln_hl --- Adam Kress Special to The Business Review America West Airlines stockholders Tuesday voted overwhelmingly in favor of an America West Airlines-US Airways merger. The stockholder vote was one of the final hurdles in a process that began when the two airlines announced their plans May 19. Among stockholders holding voting rights of Class B America West stock, 85.2 percent voted in favor of the merger, with 4.4 percent voting against and 10.4 percent abstaining. Of stockholders holding voting rights of Class A America West stock, 100 percent voted in favor of the merger. The result is that the merger agreement has received America West stockholder approval with 95.5 percent of total voting shares in favor of the merger. "Today's results reflect overwhelming support for our proposed merger with US Airways, which will create a stronger airline that offers improved job stability for our employees, expanded service for our customers and a more long-term, viable investment for our stockholders," said AWA Chief Executive Doug Parker. "With US Airways final bankruptcy court hearing scheduled for later this week, we anticipate closing our merger with US Airways at the end of September as previously scheduled." The US Airways (OTCBB: UAIRQ) and America West (NYSE: AWA) merger will attempt to create, airline officials say, the first full-service, low-cost nationwide airline, with a pricing structure offering a network of low-fare service to more than 200 cities across the U.S., Canada, Mexico, Latin America, the Caribbean and Europe. The merged airline will operate under the US Airways brand and will be based in Tempe. The merger is expected to close in late September. America West Airlines currently serves more than 90 destinations in the U.S., Canada, Mexico and Costa Rica. US Airways, based in Arlington, Va., is the second leading carrier at Albany International Airport. For more: www.americawest.com, www.usairways.com. Adam Kress writes for The Business Journal of Phoenix, a sister publication to The Business Review. From usairways at vision.moundalexis.com Tue Sep 13 23:38:27 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 13 Sep 2005 19:38:27 -0400 (EDT) Subject: [US Airways] America West shareholders approve proposed merger with US Airways Message-ID: <20050913193745.S673-100000@vision.moundalexis.com> 13 September 2005 ; The Dispatch (AP) America West shareholders approve proposed merger with US Airways http://www.the-dispatch.com/apps/pbcs.dll/article?AID=/20050913/APF/509130544 --- By JACQUES BILLEAUD Associated Press Writer Shareholders of America West Airlines' parent company on Tuesday approved the carrier's proposed merger with US Airways, one of the last milestones in the plan to wed the two geographically distinct airlines. America West Holdings Corp. said nearly 96 percent of the total voting shares favored the deal. Later this week, the bankruptcy judge overseeing US Airways Group Inc.'s bankruptcy case will hold a hearing in Virginia to consider final court approval of that carrier's reorganization plan, the centerpiece of which is its proposed union with America West. U.S. Airways has its largest hub in Charlotte, N.C. "Today's results reflect overwhelming support for our proposed merger with US Airways, which will create a stronger airline that offers improved job stability for our employees, expanded service for our customers and a more long-term, viable investment for our stockholders," said Doug Parker, America West's chairman, president and chief executive. Parker will serve as chief executive of the combined airline. Parker said in a news release that he anticipates closing the deal as scheduled in late September. Officials say the two companies could start operating as one by the beginning of October. The goal is to form a stronger airline that would compete better with lower-cost rivals such as Southwest Airlines Inc. and JetBlue Airways Corp. Arlington, Va.-based US Airways has a strong presence on the East Coast and in the Caribbean. America West, based in Tempe, operates across the West from hubs in Phoenix and Las Vegas. Even though America West is considered the financially stronger company, the US Airways name will survive and be used when the nation's seventh- and eighth-largest carriers are combined to create the No. 6 airline. The deal will be funded by $1.5 billion in new capital from a variety of investors, including the European aircraft maker Airbus. If the bankruptcy court approves the merger, customers will begin to see image changes almost immediately, airline officials have said. But flight crews, maintenance and safety procedures for each airline will remain separate for some time. The airlines say soon after the merger, frequent flier miles accumulated at one airline will apply to the other carrier. The combined airline's headquarters will be in Tempe. America West shares fell 24 cents to close at $7.08 Tuesday on the New York Stock Exchange. From usairways at vision.moundalexis.com Thu Sep 15 02:12:39 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 14 Sep 2005 22:12:39 -0400 (EDT) Subject: [US Airways] Teamsters, CWA Agree to Share US Airways, America West Representation Message-ID: <20050914221034.K673-100000@vision.moundalexis.com> 14 September 2005 ; The NewStandard Teamsters, CWA Agree to Share US Airways, America West Representation http://newstandardnews.net/content/?action=show_item&itemid=2351 --- by Brendan Coyne Sep 14 - Ahead of a nearly finalized merger between US Airways and America West, the unions representing workers at the two companies avoided a potential confrontation and announced a proposed partnership of their own Monday. The alliance represents the first major cooperative effort between an AFL-CIO-affiliated union and a member of a new, dissident coalition. In a statement yesterday, the International Brotherhood of Teamsters and the Communications Workers of America said they were forming a joint airline employees association, bringing unionized workers at both companies under a single banner in order to put them on better footing when dealing with the consolidated air carrier. The Teamsters recently left the AFL-CIO in order to work with six other unions on new strategies for growing the size and power of organized labor. Like the majority of airlines, US Airways and America West have been struggling financially for the past several years. Last year, US Airways filed for bankruptcy, paving the way for the imminent merger with America West. At a meeting yesterday, America West shareholders approved the deal. Teamsters working for America West picketed the meeting to express concern over job security, the union said in a statement. The mechanics and airline management have been in contract negotiations for over a year. In a letter to members Friday, America West pilots' union president J.R. Baker cautioned pilots that the merger could be just the first of many as the industry pursues further consolidation, the Pittsburgh Post-Gazette reports today. The consolidation deal still must gain the approval of a bankruptcy court. From usairways at vision.moundalexis.com Thu Sep 15 02:18:52 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 14 Sep 2005 22:18:52 -0400 (EDT) Subject: [US Airways] Creditors Approve US Airways Plan of Reorganization Message-ID: <20050914221638.G673-100000@vision.moundalexis.com> 14 September 2005 ; PR Newswire Creditors Approve US Airways Plan of Reorganization http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-14-2005/0004107519&EDATE= --- Creditors Approve US Airways Plan of Reorganization Confirmation Hearing to Begin Thursday in Alexandria US Airways Moves Closer to Emerging from Chapter 11 by the End of September ARLINGTON, Va., Sept. 14 /PRNewswire-FirstCall/ -- US Airways announced today that its Chapter 11 Plan of Reorganization (POR), anchored by its proposed merger with America West Airlines, has been formally and overwhelmingly approved by the US Airways creditors. The affirmative vote by the creditors, coupled with the separate approval by America West shareholders yesterday, leaves the judicial confirmation hearing of the plan by the U.S. Bankruptcy Court as the key remaining step prior to the expected emergence from Chapter 11 and the consummation of the proposed merger. The independent claims agent, Donlin, Recano and Company, which tabulated the vote on the proposed POR, today filed its report with the U.S. Bankruptcy Court in Alexandria, Va., confirming that US Airways has received more than a sufficient number of votes in favor of its POR. Every class of creditor for all five debtors -- US Airways, Inc., US Airways Group, Inc., PSA Airlines, Inc., Piedmont Airlines, Inc., and Material Services Company, Inc. -- in the Chapter 11 cases that was entitled to vote on the POR, has voted in favor by at least 90 percent in dollar amount and 80 percent in the number of votes cast. This is well in excess of the required two-thirds vote in dollar amount, and more than one-half of the number of votes, which also is required. "We have worked enthusiastically to put together a robust plan that willbenefit our customers, our stakeholders and our employees. The result will be a more stable and more competitive US Airways," said US Airways President and Chief Executive Officer Bruce R. Lakefield. "This strong vote of confidence by our creditors adds momentum as we look to emerge from Chapter 11 and complete our merger with America West Airlines in a few weeks." The plan confirmation hearing is scheduled to begin at 9:30 a.m., on Thursday, Sept. 15, 2005, at the U.S. District Courthouse in Alexandria. Under the terms of the merger agreement, the transaction can close on the 11th day following entry of a final order by Judge Stephen S. Mitchell, confirming the plan. From usairways at vision.moundalexis.com Thu Sep 15 02:19:48 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 14 Sep 2005 22:19:48 -0400 (EDT) Subject: [US Airways] US Airways Creditors OK Bankruptcy Plan Message-ID: <20050914221853.M673-100000@vision.moundalexis.com> 14 September 2005 ; Forbes US Airways Creditors OK Bankruptcy Plan http://www.forbes.com/business/feeds/ap/2005/09/14/ap2224625.html --- US Airways Group Inc. on Wednesday said creditors approved its Chapter 11 bankruptcy plan of reorganization, anchored by its proposed merger with America West Holdings Corp. A judicial confirmation hearing is the final hurdle to the company's exit from bankruptcy protection, which it has operated under twice in three years. The hearing is scheduled for Thursday. The acquisition by America West, which company's shareholders approved Tuesday, is expected to close within weeks. Shares of US Airways slipped a penny to 25 cents on the over-the-counter bulletin board, while shares of America West fell 10 cents to $6.98 in afternoon trading on the New York Stock Exchange. From usairways at vision.moundalexis.com Thu Sep 15 02:21:08 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 14 Sep 2005 22:21:08 -0400 (EDT) Subject: [US Airways] Johnstown Airport Flights Ended Message-ID: <20050914221949.D673-100000@vision.moundalexis.com> 14 September 2005 ; WJACTV Johnstown Airport Flights Ended http://www.wjactv.com/news/4972531/detail.html --- U.S. Airways announces flights from the Johnstown Cambria County Airport to Washington Dulles International Airport will end on October 13. This news, announced just days after the Johnstown Cambria County Airport Authority announced their "Fly From Johnstown" marketing campaign. Published reports say by early November all flights from the Johnstown Airport will be non-stop to Pittsburgh and by that same time all flights from the Altoona Airport will be non-stop to Washington Dulles International. Channel 6 spoke to Bob Layo of the Johnstown Cambria County Chamber of Commerce on Wednesday. He say he's disappointed to hear the news and he doesn't believe the airport has been given enough time to see the true impact of the Washington flights. He also says the business community will push for flights to continue from Johnstown to Washington. From usairways at vision.moundalexis.com Thu Sep 15 02:21:54 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 14 Sep 2005 22:21:54 -0400 (EDT) Subject: [US Airways] US Airways reorganization approved Message-ID: <20050914222109.U673-100000@vision.moundalexis.com> 14 September 2005 ; The Washington Post US Airways reorganization approved http://www.washingtonpost.com/wp-dyn/content/article/2005/09/14/AR2005091401331.html --- WASHINGTON (Reuters) - Creditors of US Airways have voted overwhelmingly to approve the company's bankruptcy reorganization plan, which is centered around a proposed merger with America West Airlines , US Airways said on Wednesday. The affirmation followed approval on Tuesday by America West shareholders. A federal bankruptcy judge in Alexandria, Virginia, will consider the merger proposal at a hearing beginning on Thursday. US Airways' bankruptcy emergence and merger proposal was approved by 80 percent of more than 1,500 votes cast by creditors, the airline said. Creditors include pension fund and investor Retirement Systems of Alabama, aircraft manufacturer Airbus , the federal Pension Benefit Guaranty Corp., General Electric Co. , banks, airports, hotels and other vendors. At least two unions are opposed to the plan based on a proposed incentive program to retain senior officers during the merger process. US Airways and America West hope to complete the deal this fall, but it could take two years or more to combine their entire operations. From usairways at vision.moundalexis.com Thu Sep 15 02:23:29 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 14 Sep 2005 22:23:29 -0400 (EDT) Subject: [US Airways] Key votes bring US Airways closer to emerging from bankruptcy Message-ID: <20050914222239.G673-100000@vision.moundalexis.com> 14 September 2005 ; Triangle Business Journal Key votes bring US Airways closer to emerging from bankruptcy http://triangle.bizjournals.com/triangle/stories/2005/09/12/daily22.html?jst=b_ln_hl --- US Airways' Chapter 11 reorganization plan has been approved by its creditors, the airline said Wednesday. The move comes a day after America West Holdings shareholders put their stamp of approval on plans to merge with US Airways, a step that's central to the bankruptcy reorganization. The results of a vote by creditors was filed with U.S. Bankruptcy Court in Alexandria, Va., on Wednesday. America West shareholders voted 96 percent Tuesday in favor of the merger, designed to allow US Airways (OTCBB: UAIRQ) of Arlington, Va., to exit from bankruptcy protection. If the merger goes through, US Airways plans to move its headquarters to Phoenix, which is home to America West Holdings (NYSE: AWA). The combined airlines will fly under the US Airways name as a low-cost carrier that will be the sixth-largest in the nation. The bankruptcy court will begin hearing final comments on US Airways' reorganization plan on Sept. 15. The court's approval of the reorganization plan is the key remaining step needed before the airline's emergence from bankruptcy and merger with America West, the airline said. US Airways and America West both provide service at Raleigh-Durham International Airport. From usairways at vision.moundalexis.com Thu Sep 15 02:24:47 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 14 Sep 2005 22:24:47 -0400 (EDT) Subject: [US Airways] US Airways plan gets creditor OK Message-ID: <20050914222401.J673-100000@vision.moundalexis.com> 14 September 2005 ; Tampa Bay Business Journal US Airways plan gets creditor OK http://tampabay.bizjournals.com/tampabay/stories/2005/09/12/daily42.html?jst=b_ln_hl --- Creditors have approved a Chapter 11 reorganization plan from US Airways Group. Now only court approval remains for the airline to merge with America West Holding Corp. Both carriers serve Tampa. US Airways (OTCBB: UAIRQ), TIA's No. 3 carrier, also serves Sarasota/Bradenton International Airport, where America West (NYSE: AWA) has no flights. The U.S. Bankruptcy Court in Alexandria, Va., received the results of the credits' vote, Wednesday. The court is slated to begin hearing final comments on US Airways' reorganization plan, Thursday. Tuesday, America West shareholders voted overwhelmingly in favor of the $1.5 billion merger, designed to allow Virginia-based US Airways to exit bankruptcy protection. Following the last of the approvals it needs, along with a 10-day grace period for potential objections, the merger will be complete. The airlines speculated the first day they will combined operations could come as early as Sept. 27. The new company would take the US Airways name but be headed by America West Chief Executive Officer Doug Parker. US Airways CEO Bruce Lakefield would be vice chairman following the merger. The combined airline, which said it expects to generate revenue of $10 billion a year, would be based in Tempe, Ariz. Airline officials have said the merger will work to create the first full-service, low-cost, nationwide airline, serving more than 200 cities in the United States, Canada, Mexico, Latin America, the Caribbean and Europe. From usairways at vision.moundalexis.com Thu Sep 15 12:08:32 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 15 Sep 2005 08:08:32 -0400 (EDT) Subject: [US Airways] US Airways executives' pay bashed Message-ID: <20050915080340.N673-100000@vision.moundalexis.com> 14 September 2005 ; Beaver County Times & Allegheny Times US Airways executives' pay bashed http://www.timesonline.com/site/news.cfm?newsid=15214735&BRD=2305&PAG=461&dept_id=478569&rfi=6 --- Karen Ferrick-Roman, Times Staff Bonuses and other compensation for US Airways' executives, even in a revised form, continue to draw objections from unions in regard to the airline's reorganization plan/merger with America West Airlines. Creditors overwhelmingly approved the reorganization plan Wednesday, clearing the way for the last key step: confirmation of the plan in U.S. Bankruptcy Court in Alexandria, Va. The hearing begins this morning, and the merger transaction could close before the end of the month, just as soon as the judge signs the final order and a 10-day comment period passes. However, major unions remain opposed to a proposal in the plan that would pay millions in bonuses and retention pay to top executives. According to an objection filed by the International Association of Machinists, US Airways is proposing to provide top executives with up to $5 million total in what the airline is calling a "Cash Performance Award." The bonuses would be "on top of generous stock incentives provided to those employees," the IAM filing said. That means highly compensated senior executives "can receive seven-figure bonuses while the union membership can look forward to more work for substantially less compensation." Last spring, US Airways proposed that up to $55 million be paid to 25 officers and 1,893 nonunion workers for staying on the job, even when those jobs might be lost in the proposed merger. US Airways cut $4 million from the plan after protests by the Unsecured Creditors Committee, which includes unions, unions themselves and individuals. Bankruptcy Judge Stephen M. Mitchell cut that amount even further, allowing only $20 to $28 million as severance pay for managers, and scuttling the severance packages for 23 top officers. That was reasonable, allowing managers who probably will be losing their jobs to get severance pay, said Frank Schifano, president of the local IAM, which represents mechanics. But in this plan, compensation for top executives again is included, packaged in a different way, Schifano said. The company did not elaborate on the plan. The Association of Flight Attendants has agreed not to object to the overall plan, in return for improvements in sick leave, sick-call penalties and the profit-sharing plan, said Teddy Xidas, president of the Pittsburgh local and national US Airways' flight attendants' union. "They bought us off, basically," she said. However, Xidas said the union reserves "the right to object to any transition, retention or severance bonus for senior management, and we will object." Flight attendants have been through rounds of concessions; many others have lost jobs. On Sept. 1, the most recent staff cuts took 60 more Pittsburgh flight attendant jobs, part of a systemwide cut of 400, Xidas said. "We still object to (executive bonuses)," said Chris Fox, president of the Pittsburgh Communications Workers of America local, which represents 197 gate and reservation agents in Pittsburgh. Before the Green Tree reservation center started thinning its ranks, anticipating its August closing, the local had 1,100 members. "All these people have lost their jobs," Fox said, "so we don't think that that's right." The CWA and Air Line Pilots Association joined the chorus of objections. Objections haven't seemed to garner much attention in bankruptcy court, Fox said, but: "I always have hope. I don't know what this bankruptcy judge will do. I don't think it's going to hold up (US Airways) getting out of bankruptcy and merging, but I think we have legitimate issues. (The judge) usually does rule in favor of the company, but we're going to give it our best shot." From usairways at vision.moundalexis.com Thu Sep 15 22:50:51 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 15 Sep 2005 18:50:51 -0400 (EDT) Subject: [US Airways] Unions Drop Objections to US Airways Plan Message-ID: <20050915184846.R673-100000@vision.moundalexis.com> 15 September 2005 ; The Washington Post Unions Drop Objections to US Airways Plan http://www.washingtonpost.com/wp-dyn/content/article/2005/09/15/AR2005091501274 --- By MATTHEW BARAKAT The Associated Press Thursday, September 15, 2005; 6:16 PM ALEXANDRIA, Va. -- A bankruptcy judge heard final arguments Thursday on US Airways Group Inc.'s plan to emerge from Chapter 11 protection and merge with America West Airlines. The largest remaining objection to the plan comes from unions angered by a proposal to pay $12 million in severance to 11 top US Airways executives who will not be offered jobs with the merged airlines. Chief Executive Bruce Lakefield, who will serve as vice chairman of the merged airline but will serve in a non-executive capacity, stands to receive $1.7 million under the plan _ four times his annual base salary. Other executives stand to receive anywhere from roughly three times annual salary to one year's salary plus a bonus. Union leaders have asked U.S. Bankruptcy Judge Stephen Mitchell to scale back the severance pay and require executives to forfeit some of the pay if they find new jobs. They argued that the payments are unfair in light of the pay cuts and layoffs that union workers have endured over the last three years that have put the company in position to emerge from bankruptcy protection. US Airways lawyer Brian Leitch said the payments are typical in the industry and a fair result for executives who have worked hard to complete a merger that puts them out of work but saves the jobs of US Airways' 29,000 employees. Mitchell will rule on the severance package and several minor issues Friday morning. At that point, he is expected to confirm the airline's reorganization plan, which would be the final step in allowing the airline to emerge from bankruptcy and merge with America West. Shareholders at America West Holdings Corp. overwhelmingly approved the merger earlier this week, and various regulatory agencies have already approved the deal. Executives at the two airlines hope to formally close on the merger late this month or in early October. Also on Thursday, the airline resolved two other union objections to its reorganization plan. The unions agreed to accept a reduced profit-sharing plan to accommodate outside investors, and unions withdrew their demand for representation on the new airline's board of directors, accepting instead positions on a special labor committee that will meet frequently with the board. US Airways and America West say that they will be the nation's first full-service, low-fare, low-cost carrier when the merger is completed. As US Airways stands on the brink of its second bankruptcy reorganization in two years, competitors Delta and Northwest airlines this week joined United Airlines in bankruptcy protection. Under the merger, the US Airways name will be used but headquarters will move to America West's base in Tempe, Ariz. America west's Doug parker will serve as chief executive. The airlines said that when combined, they will be the nation's fifth largest airline. From usairways at vision.moundalexis.com Fri Sep 16 11:58:15 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 16 Sep 2005 07:58:15 -0400 (EDT) Subject: [US Airways] Judge to rule Friday on US Airways Message-ID: <20050916075734.F673-100000@vision.moundalexis.com> 15 September 2005 ; The Charlotte Observer Judge to rule Friday on US Airways http://www.charlotte.com/mld/charlotte/living/travel/12654300.htm --- Stan Choe, Tony Mecia ALEXANDRIA, Va. -- US Airways' bankruptcy-court judge said Thursday afternoon he will rule Friday at 10 a.m. on the airline's request to exit bankruptcy. The judge's approval is the final hurdle for the company to leave bankruptcy protection. If the judge approves the airline's reorganization plan, the airline could merge with America West Airlines as soon as Sept. 27. Most of the day in court was spent arguing over US Airways' proposal to offer $12 million in severance to 23 top executives. Labor unions said executives should not get the money, while the company said it is needed to encourage them to help with the merger transition. US Airways is Charlotte's largest hub. About 5,300 of its 22,000 employees are based in the city. From usairways at vision.moundalexis.com Sun Sep 18 00:08:21 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 17 Sep 2005 20:08:21 -0400 (EDT) Subject: [US Airways] Judge OKs US Air-America West deal Message-ID: <20050917200710.F673-100000@vision.moundalexis.com> 16 September 2005 ; Reuters Judge OKs US Air-America West deal http://money.cnn.com/2005/09/16/news/fortune500/us_airways.reut/ --- Creation of nation's No. 5 airline will end US Air's second bankruptcy in three years. ALEXANDRIA, Va. (Reuters) - A federal judge approved Friday US Airways' plan to emerge from bankruptcy and merge with America West Airlines Inc., capping US Airways' second bankruptcy restructuring in three years. Judge Stephen Mitchell of the U.S. Bankruptcy Court for the Eastern District of Virginia signed off on the deal that will create the fifth largest domestic airline by passenger volume. The parties must wait 10 days before completing the transaction. US Airways says the merged company will have $2.5 billion in cash, including unrestricted and restricted amounts. The merger plan anticipates oil prices of $58 per barrel in 2006 and $57 per barrel in 2007. Oil was trading around $64 a barrel on Friday. "With the financial position of other carriers deteriorating, we are pleased we will have a very strong cash position, a robust business plan, a low-cost structure and a strong network," said Bruce Lakefield, US Airways CEO and soon to be vice chairman of the new airline. Delta Air Lines Inc. (Research) and Northwest Airlines Corp. (Research) filed for bankruptcy protection Wednesday. The merged company will fly under the US Airways flag and be based at America West (Research) headquarters in Tempe, Arizona. Its stock will trade on the New York Stock Exchange under the symbol "LCC". Creditors of US Airways and shareholders of America West have already approved the deal. Mitchell earlier Friday gave approval to a severance plan for 23 US Airways executives, who will either lose their jobs in the merger, or soon after. Unions at US Airways opposed the packages, calling them an insult to thousands of regular workers who took pay and benefit cuts in the reorganization. From usairways at vision.moundalexis.com Sun Sep 18 00:09:01 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 17 Sep 2005 20:09:01 -0400 (EDT) Subject: [US Airways] US Airways Gets OK to Emerge From Ch. 11 Message-ID: <20050917200824.S673-100000@vision.moundalexis.com> 16 September 2005 ; CBS News US Airways Gets OK to Emerge From Ch. 11 http://www.cbsnews.com/stories/2005/09/16/ap/business/mainD8CLENP81.shtml --- (AP) US Airways received approval Friday to emerge from Chapter 11 protection, clearing the way for the nation's seventh-largest airline to merge with America West Holdings Corp. US Airways Group Inc. must wait at least 10 days before formally emerging from bankruptcy. It expects to emerge and formally close on its merger with America West, the nation's eighth largest airline, late this month or in early October. U.S. Bankruptcy Judge Stephen Mitchell's ruling came just two days after Delta Air Lines Inc. and Northwest Airlines Corp. filed for bankruptcy protection. The judge's approval came after he ruled on the last remaining objections to the airline's plan of reorganization. Most significantly, the airline's unions had objected to an executive severance package that would provide $12 million in pay to 11 top executives who will not be given jobs with the merged airline. Mitchell approved the severance package, saying it was in line with executive contracts in the airline industry. This was US Airways' second Chapter 11 filing since August 2002. The first filing came after federal regulators rejected a proposed merger with UAL Corp.'s United Airlines, followed by the industrywide collapse caused by the Sept. 11 attacks. US Airways thought it had corrected its problems in the first bankruptcy, but it failed to anticipate rising fuel costs and rapidly increasing competition from low-cost carriers like Southwest Airlines, which began flying out of US Airways' hub in Philadelphia. US Airways is one of four major U.S. carriers in bankruptcy protection, along with United Airlines, Delta and Northwest. Delta and Northwest filed for Chapter 11 in New York on Wednesday. United Airlines filed for bankruptcy protection in 2002. America West and US Airways believe their merger will be successful because US Airways _ which just four years ago had the highest labor costs in the industry _ now pays salaries equivalent to those at low-cost carriers like Jet Blue and America West. The airlines say the merger will create the nation's first full-service, low-fare airline. Shareholders of America West, based in Tempe, Ariz., will own about 37 percent of the new company. Outside investors, who supply $565 million in financing, will get an estimated 52 percent, and unsecured creditors of US Airways will receive about 12 percent stake. From usairways at vision.moundalexis.com Sun Sep 18 00:11:06 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 17 Sep 2005 20:11:06 -0400 (EDT) Subject: [US Airways] Judge OKs US Airways restructuring, clears way for merger Message-ID: <20050917201013.O673-100000@vision.moundalexis.com> 16 September 2005 ; Pittsburgh Business Times Judge OKs US Airways restructuring, clears way for merger http://pittsburgh.bizjournals.com/pittsburgh/stories/2005/09/12/daily37.html --- A judge on Friday approved US Airways Group Inc.'s restructuring plan, allowing the carrier to emerge from Chapter 11 bankruptcy and clearing the way for its merger with America West Airlines. The merger, now expected to close by the end of the month, will create the nation's fifth-largest airline. Judge Stephen Mitchell of the U.S. Bankruptcy Court for the Eastern District of Virginia ruled that all necessary requirements have been met for US Airways (OTCBB:UAIRQ) to implement its plan of reorganization. The carrier said all its creditors also approved the plan. The airline will be able to emerge from bankruptcy and merge with America West (NYSE:AWA) on the 11th day following the judge's approval, which would be Sept. 27. The new company will take the US Airways name and be headed by America West Chief Executive Doug Parker. US Airways CEO Bruce Lakefield will be vice chairman following the merger. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. "This is a great day for both US Airways and America West," Lakefield said. "Through our restructuring, we have reduced our debt, improved our liquidity and strengthened our balance sheet. With the financial position of other carriers deteriorating, we are pleased that we will have a very strong cash position, a robust business plan, a low cost structure, and a strong network that offers our customers an attractive product and more choices." Elements of the plan include: * Total equity and liquidity agreements to provide the merged airline with unrestricted cash of approximately $1.7 billion, and a total cash position of approximately $2.5 billion, including approximately $800 million of restricted cash. * Investment agreements that total $565 million in new equity and a public stock offering that is expected to raise $150 million. Support from business partners and suppliers that will provide in excess of $700 million in cash, and asset sales and sale-leaseback agreements that are expected to gross $300 million pending consummation of certain of the transactions. * Agreement between US Airways and the Pension Benefit Guaranty Corp., resolving nearly $2.7 billion in claims. The agreement provides for US Airways to pay the PBGC $13.5 million in cash, in addition to giving the PBGC a $10 million note and 70 percent of the common stock, which will be allocated to unsecured creditors. US Airways is the dominant airline at Pittsburgh International Airport with more than 200 flights a day. When the merger is completed, Pittsburgh is expected to be a secondary hub. From usairways at vision.moundalexis.com Sun Sep 18 00:12:24 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 17 Sep 2005 20:12:24 -0400 (EDT) Subject: [US Airways] AmWest-US Airways merger means changes for Sky Harbor Message-ID: <20050917201107.J673-100000@vision.moundalexis.com> 16 September 2005 ; The Business Journal of Phoenix AmWest-US Airways merger means changes for Sky Harbor http://phoenix.bizjournals.com/phoenix/stories/2005/09/12/daily58.html?jst=b_ln_hl --- Diane Arthur The Business Journal The America West Airlines-US Airways merger will bring changes to Phoenix Sky Harbor International Airport. US Airways is moving its two gates out of Sky Harbor's Terminal 2 and into Terminal 4, where America West currently operates. Effective Tuesday, Oct. 4, all US Airways flights will arrive and depart from Terminal 4. "Sky Harbor is one of 38 airports in which America West and US Airways will have to consolidate their gates," America West spokesman Carlo Bertolini told the Phoenix Business Journal. Signs will be posted inside and outside the airport terminals, directing customers to the right location. Bertolini also said any changes will be posted on the airline's Web site. Deborah Ostreicher, deputy aviation director at Sky Harbor, said Terminal 4 has plenty of room to accommodate US Airways (OTCBB: UAIRQ) and that the terminal was built with expansion in mind if the merged airline ever expands its Phoenix operations. America West (NYSE: AWA) currently occupies 50 gates at Terminal 4. A judge handling the US Airways Chapter 11 bankruptcy case gave the go-ahead to the merger Friday morning when he approved the carrier's reorganization plan, which was centered around the merger. From usairways at vision.moundalexis.com Sun Sep 18 00:14:31 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 17 Sep 2005 20:14:31 -0400 (EDT) Subject: [US Airways] Judge Confirms US Airways Reorg Plan Message-ID: <20050917201225.F673-100000@vision.moundalexis.com> 16 September 2005 ; BTN Online Judge Confirms US Airways Reorg Plan http://www.btnmag.com/businesstravelnews/headlines/article_display.jsp?vnu_content_id=1001138325 --- SEPTEMBER 16, 2005 -- US Airways today received bankruptcy court approval for its planned merger with America West Airlines and said the deal could close as early as Sept. 27. The companies said their newly combined entity would operate the fifth-largest commercial carrier in the domestic market as "the nation's first full-service, low-cost airline (BTN, June 6)." Today's confirmation was a formality, as US Airways and AWA previously obtained all the necessary support from the federal government, shareholders, creditors and other financial backers. It came two-and-one-half years after US Airways last emerged from bankruptcy protection (BTNonline, March 31, 2003), and one year to the week since it re-entered (BTN, Sept. 20, 2004). It also ended a chaotic week for the airline industry that saw two more major carriers sink into insolvency (BTNonline, Sept. 15). US Airways' "full attention" now is on integrating with AWA, in what could mark the beginning of wider industry consolidation. Headquarters will be located in AWA's Tempe, Ariz., base and AWA chief Doug Parker will become president and CEO of the combined company. US Airways chief Bruce Lakefield will serve as non-executive vice chairman of the board of directors. From usairways at vision.moundalexis.com Sun Sep 18 00:17:14 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 17 Sep 2005 20:17:14 -0400 (EDT) Subject: [US Airways] US Airways Gets OK to Emerge From Ch. 11 Message-ID: <20050917201624.I673-100000@vision.moundalexis.com> 16 September 2005 ; Salon (AP) US Airways Gets OK to Emerge From Ch. 11 http://www.salon.com/wire/ap/archive.html?wire=D8CLGMI00.html --- By MATTHEW BARAKAT AP Business Writer September 16,2005 | ALEXANDRIA, Va. -- US Airways received approval Friday to emerge from Chapter 11 protection, clearing the way for the nation's seventh-largest airline to merge with America West Holdings Corp. US Airways Group Inc. must wait at least 10 days before formally emerging from bankruptcy. It expects to emerge and formally close on its merger with America West, the nation's eighth largest airline, late this month or in early October. After Friday's hearing, Bruce Lakefield, chief executive of US Airways, said he is confident that the merger will succeed despite record fuel prices and tough competition in the industry. "Ticket prices are going up," he said. "You've got to face the fact that customers will have to pay for the product." U.S. Bankruptcy Judge Stephen Mitchell's ruling came just two days after Delta Air Lines Inc. and Northwest Airlines Corp. filed for bankruptcy protection. "I have every hope and confidence that the airline will prosper in the future," Mitchell said. The judge's approval came after he ruled on the last remaining objections to the airline's plan of reorganization. Most significantly, the airline's unions had objected to an executive severance package that would provide $12 million in pay to 11 top executives who will not be given jobs with the merged airline. Mitchell approved the severance package, saying it was in line with executive contracts in the airline industry. This was US Airways' second Chapter 11 filing since August 2002. The first filing came after federal regulators rejected a proposed merger with UAL Corp.'s United Airlines, followed by the industrywide collapse caused by the Sept. 11 attacks. US Airways thought it had corrected its problems in the first bankruptcy, but it failed to anticipate rising fuel costs and rapidly increasing competition from low-cost carriers like Southwest Airlines, which began flying out of US Airways' hub in Philadelphia. US Airways is one of four major U.S. carriers in bankruptcy protection, along with United Airlines, Delta and Northwest. Delta and Northwest filed for Chapter 11 in New York on Wednesday. United Airlines filed for bankruptcy protection in 2002. America West and US Airways believe their merger will be successful because US Airways -- which just four years ago had the highest labor costs in the industry -- now pays salaries equivalent to those at low-cost carriers like Jet Blue and America West. The airlines say the merger will create the nation's first full-service, low-fare airline. Shareholders of America West, based in Tempe, Ariz., will own about 37 percent of the new company. Outside investors, who supply $565 million in financing, will get an estimated 52 percent, and unsecured creditors of US Airways will receive about 12 percent stake. From usairways at vision.moundalexis.com Sun Sep 18 00:19:15 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 17 Sep 2005 20:19:15 -0400 (EDT) Subject: [US Airways] US Airways cleared to exit bankruptcy Message-ID: <20050917201814.L673-100000@vision.moundalexis.com> 16 September 2005 ; Reuters US Airways cleared to exit bankruptcy http://today.reuters.com/business/newsarticle.aspx?type=ousiv&storyID=2005-09-16T182824Z_01_MOR656071_RTRIDST_0_BUSINESSPRO-AIRLINES-USAIRWAYS-APPROVAL-DC.XML --- By John Crawley ALEXANDRIA, Virginia (Reuters) - A federal judge on Friday approved US Airways' plan to emerge from bankruptcy and merge with America West Airlines Inc. , capping US Airways' second bankruptcy restructuring in three years. Judge Stephen Mitchell of the U.S. Bankruptcy Court for the Eastern District of Virginia signed off on the deal, which will create the fifth-largest domestic airline by passenger volume. The parties must wait 10 days before completing the transaction. "I have every hope and confidence that the new airline will prosper in the future," Mitchell said before issuing his order to confirm the new business plan. Mitchell presided over both US Airways bankruptcies. US Airways says the merged company will have $2.5 billion in cash, including unrestricted and restricted amounts. The merger plan anticipates oil prices of $58 per barrel in 2006 and $57 per barrel in 2007. Oil was trading around $64 a barrel on Friday. "With the financial position of other carriers deteriorating, we are pleased we will have a very strong cash position, a robust business plan, a low-cost structure and a strong network," said Bruce Lakefield, US Airways Chief Executive and soon to be vice chairman of the merged airline. Other top U.S. airlines operating in bankruptcy are Delta Air Lines Inc. , Northwest Airlines Corp. and United Airlines, the main unit of UAL Corp. . The merged airline will fly under the US Airways flag and be based at America West headquarters in Tempe, Arizona. Its stock will trade on the New York Stock Exchange under the symbol "LCC" . Lakefield said US Airways would compete with low-cost rivals, even with fuel prices near record highs. "Ticket prices are going up," he said. "You have to pay for the product." America West stock was up 43 cents, or 6.2 percent, at $7.39 in early afternoon trading on the New York Stock Exchange. Creditors of US Airways and shareholders of America West have already approved the deal. Before approving the merger, Mitchell granted US Airways' request -- over union objections -- for a severance plan for company officers worth up to $12 million. Lakefield would be eligible for $1.7 million in any severance payout. Lakefield noted the sacrifices of US Airways employees -- $1.1 billion in annual concessions -- but said there are different levels of compensation for various work groups and acceptable levels of severance for executives in the industry. "I think we worked very hard for that," Lakefield said. Investors will own 52 percent of the merged airline after committing more than $565 million. Additional investments by suppliers and vendors boost the merger value to more than $1.5 billion. Investors include Air Canada's parent, ACE Aviation Holdings Inc. ; Tudor Investment Corp., PAR Capital Management, Wellington Management Co. LLP, Wexford Capital, which purchased planes for its express airline unit; and Eastshore Aviation, which owns Air Wisconsin. General shareholders in the old US Airways will get nothing. Shareholders of America West get 37 percent of the new company, and unsecured creditors will get about 12 percent. The Pension Benefit Guaranty Corp., the government pension insurer, which has assumed $2.7 billion of US Airways' retirement obligations, will get 5.7 million shares. Pilots will get 1.2 million shares. From usairways at vision.moundalexis.com Sun Sep 18 00:21:05 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 17 Sep 2005 20:21:05 -0400 (EDT) Subject: [US Airways] Bankruptcy judge OKs US Airways' reorganization plan Message-ID: <20050917202018.Y673-100000@vision.moundalexis.com> 16 September 2005 ; Investor's Business Daily Bankruptcy judge OKs US Airways' reorganization plan http://www.investors.com/breakingnews.asp?journalid=31665871&brk=1 --- By Shawn Langlois SAN FRANCISCO (MarketWatch) -- A federal bankruptcy court judge on Friday confirmed US Airways' plan to emerge from bankruptcy, paving the way for the carrier's merger with America West in a partnership that will create the nation's fifth-largest airline. Judge Stephen Mitchell of Virginia, as widely expected, ruled that US Airways (UAIRQ) has met all the necessary requirements to implement its restructuring plan. Under the terms of the merger agreement, US Airways can close the deal with America West (AWA) 11 days after the court approves the plan, which means the merger could be complete as early as Sept. 27. "Through our restructuring, we have reduced our debt, improved our liquidity and strengthened our balance sheet," said Chief Executive Bruce Lakefield in a statement. "With the financial position of other carriers deteriorating, we are pleased that we will have a very strong cash position, a robust business plan, a low cost structure, and a strong network that offers our customers an attractive product and more choices," he added. This marks US Airways' second emergence from bankruptcy in just two years, coinciding with Chapter 11 filings from both Delta Air Lines (DAL) and Northwest Airlines (NWAC) earlier this week. See full story. Shares of America West Holdings gained 7.9% to finish at $7.51, while bankrupt US Airways saw its shares jump 7 cents, or 31%, to end the session at 28 cents. From usairways at vision.moundalexis.com Sun Sep 18 00:23:04 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 17 Sep 2005 20:23:04 -0400 (EDT) Subject: [US Airways] US Airways Unions OK Lakefield's Revamp Strategy Message-ID: <20050917202141.U673-100000@vision.moundalexis.com> 15 September 2005 ; Forbes US Airways Unions OK Lakefield's Revamp Strategy http://www.forbes.com/facesinthenews/2005/09/15/usair-unions-bankruptcy-cx_gl_0915autofacescan08.html --- By Greg Levine Call it the balance of the universe: One day after Delta Air Lines (nyse: DAL - news - people ) and Northwest Airlines (nasdaq: NWAC - news - people ) each filed for Chapter 11 protection, another major legacy saw its way out get clearer. US Airways (otc: UAIRQ - news - people ) on Thursday announced that its unions had relented on two points that stood in the way of acceptance of the carrier's revamping plans. Led by Chief Executive Bruce Lakefield, the airline had declared bankruptcy twice in three years. The temper of management-employee relations grew ragged during these years, inflamed by the news that the carrier, like United parent UAL (otc: UALAQ - news - people ), was terminating its pension plan--and wasn't soothed by jests from Chairman David Bronner that he halfway hoped his firm would go belly-up. But one of the few core laws of the cosmos is that things change. On Wednesday, Lakefield's firm trumpeted that creditors OK'd its bankruptcy restructuring plan, most importantly the acquisition of the carrier by America West Holdings (nyse: AWA - news - people ). Lakefield's grand strategy involves reshaping the firm along the lines of discounters like Southwest Airlines (nyse: LUV - news - people ) and JetBlue (nasdaq: JBLU - news - people ). And on Thursday, US Airways' unions--perhaps smelling change in the air, or maybe just shuddering at the seeming impotence of striking Northwest mechanics--had a change of heart. The issues the workers' reps conceded: scaling back the employee profit-sharing plan and giving up the idea of a unionist seat on the board of the combined airlines. One more hearing to go, tussling over a management-retention package, and Lakefield's firm may emerge from bankruptcy. Too soon to say if things are better at US Airways--but at any rate, they're different. From usairways at vision.moundalexis.com Sun Sep 18 00:25:36 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 17 Sep 2005 20:25:36 -0400 (EDT) Subject: [US Airways] U.S. Airways makes exit from Chapter 11 Message-ID: <20050917202458.D673-100000@vision.moundalexis.com> 17 September 2005 ; Herald U.S. Airways makes exit from Chapter 11 http://www.bradenton.com/mld/bradenton/business/12667612.htm --- HERALD WIRE SERVICES ATLANTA - The revolving door for airlines at the bankruptcy courthouse keeps spinning, with US Airways headed out of Chapter 11 two days after Delta and Northwest airlines stepped in. US Airways' bankruptcy judge Friday approved the carrier's reorganization plan, which clears it to exit Chapter 11 and complete a merger with the smaller but profitable America West Airlines. The new carrier will be the nation's sixth-largest and will have $2.5 billion in cash, mainly from airline suppliers and hedge funds, to grease its wheels going forward. "The debtor has a viable and realistic business plan," U.S. Bankruptcy Judge Stephen Mitchell said. "I have every hope and confidence the airline will prosper." The merged carrier will keep flying under the US Airways name, but its headquarters will move to Tempe, Ariz., from Arlington, Va., and about 23 top US Airways executives will leave. Employees had objected to executive severance packages, but Mitchell allowed them. Also Friday, the Internal Revenue Service filed a claim in federal bankruptcy court saying United Airlines' parent company owes more than $114 million in excise taxes for missed contributions to its pension plans. The filing adds to the many financial claims that UAL Corp. still needs to resolve before it can emerge from Chapter 11 bankruptcy in February as targeted. Cash-strapped UAL announced in July 2004 that it would not make any more contributions to its four defined-benefit employee pension plans. After skipping more than $1 billion in required contributions, it reached an agreement to unload the plans on the Pension Benefit Guaranty Corp., the government's pension insurer - a move saving the airline an estimated $645 million a year. From usairways at vision.moundalexis.com Sun Sep 18 13:17:15 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 18 Sep 2005 09:17:15 -0400 (EDT) Subject: [US Airways] Platsky: Frequent fliers in Tier welcome back US Airways Pitt stop Message-ID: <20050918091609.T673-100000@vision.moundalexis.com> 18 September 2005 ; Press & Sun-Bulletin Platsky: Frequent fliers in Tier welcome back US Airways Pitt stop http://www.pressconnects.com/today/business/stories/bu091805s191547.shtml --- BY JEFF PLATSKY There are a whole bunch of US Airways frequent fliers who are applauding the airline's decision to reinstate service between Greater Binghamton Airport and Pittsburgh on Nov. 9. And it's not because they want direct flights to Pittsburgh. It's because they want to avoid the intolerable delays at Philadelphia International Airport, where fliers make all connections when using US Airways out of Binghamton. You almost have to build delay time into your schedule if you're flying through Philly. While booking a recent flight through a travel agent, I specifically told the agent to avoid connections through Philadelphia, even if I had to pay more for the flight. "I've heard that a lot recently," the agent responded. No wonder. A peek at Bureau of Transportation statistics for the first seven months of the year indicates that Philadelphia has more departure delays than any other major airport. Nearly one out of every three Philadelphia departures is delayed by at least 15 minutes. The airport isn't much better when it comes to arrivals. It's not the worst airport for arrivals. New York's LaGuardia and Newark have that dubious distinction. But Philadelphia has less than a sterling record, third worst in the nation. Again, nearly one-third of the arrivals at Philadelphia International Airport are delayed. To be exact, 31.22 percent of the arrivals were delayed. Compare that to the other options available at the local airport: Detroit, 21.27 percent of the arrivals delayed; Cincinnati, 18.48 percent delayed; Washington's Dulles, 22.83 percent delayed. And now the new option: Pittsburgh, 22.23 percent delayed. For departures, 31.31 percent of the flights from Philadelphia were delayed through the first seven months of the year. Other options: Cincinnati, 17.45 percent; Detroit, 20.67 percent; Washington's Dulles, 21.83 percent; Pittsburgh, 19.4 percent. Many frequent fliers who were familiar with the system bemoaned the day US Airways canceled commuter connections to Pittsburgh from Binghamton, knowing what aggravation they would have to put up with as a result. The only problem for those now trying to connect in Pittsburgh is the absence of plentiful connections. To trim expenses, the cash-strapped airline (actually, almost all major airlines are cash-strapped) trimmed Pittsburgh flights and it no longer designates the airport as a hub. Nevertheless, travelers can still catch flights in Pittsburgh for most metropolitan centers. The downside to the Pittsburgh connection is the aircraft selected for the two daily flights. The airline's commuter subsidiary is using a Dash-8, a noisy, slow turboprop that's prone to turbulence. The craft is a far cry from the more passenger-friendly regional jets that are increasingly used on these short hops. But if it's a choice between a most certain delay or a well-traveled turboprop, most frequent fliers will select the latter. --- Platsky is business editor of the Press & Sun-Bulletin. From usairways at vision.moundalexis.com Sun Sep 18 13:32:32 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 18 Sep 2005 09:32:32 -0400 (EDT) Subject: [US Airways] US Airways workers excited over company's possiblities Message-ID: <20050918093041.F673-100000@vision.moundalexis.com> 17 September 2005 ; Beaver County Times & Allegheny Times US Airways workers excited over company's possiblities http://www.timesonline.com/site/news.cfm?newsid=15233533&BRD=2305&PAG=461&dept_id=478569&rfi=6 --- Karen Ferrick-Roman, Times Staff As soon as news broke Friday morning that bankruptcy court approved US Airways' reorganization plan, Lewis Laniewski grabbed the phone to call his wife. Linda Laniewski of Ambridge, a 16-year US Airways flight attendant, was on a trip in Providence, R.I., when her husband told her the merger with America West will go forward. "Linda's very happy about it," Laniewski reported. "She thinks it will be very good for US Airways employees. They've just been hit with so many uncertainties over the last number of years that I think any change would be good. "These people around here, they've been battered, a lot of them." Though uncertainties still surround the mechanics of the merger, all US Airways employees and former employees contacted Friday were pleased to see the airline heading into Mergerville. "I still hope US Airway makes it," said Tim Baker of Kennedy Township, a pilot who left US Airways for another airline this spring. "I've got a lot of friends left up there." "I think it's the much-needed positive energy that the airline, overall, needed," said flight attendant Carrie Davis of Moon Township. But she would have liked to see more of an impact in Pittsburgh and greater reassurance that jobs will remain - possibly, even grow - locally. "I don't think that Pittsburgh will ever be an important city in the airline's eyes again," Davis said. "It was always a sore point of mine that management never thought we were important enough to be a major hub. I kind of took that personally. "Overall, it's good," said the 18-year flight attendant who plans to leave the company in December. "On one hand, I'm excited for the airline, but melancholy that I'm going to be missing out on something in the long haul." Another positive reaction came from longtime US Airways worker Debbie Scott of Chippewa Township. "I think it's a good thing - as long as they, hopefully, stir up some of the management," Scott said. "It seems like we're management-heavy." Now a mechanic, Scott came to the airline 21 years ago in the Piedmont Airlines merger, so she knows what a merger can mean. "When we first went from Piedmont to US Airways, it was like a totally different environment and different standard of work." Some colleagues carried over what Scott called the "old steel mill theory: If you don't do too much work, they'll hire another person to pick it up. Now it's gotten to where you work to save your job." Scott has heard that America West Chief Executive Officer Doug Parker, who will be CEO and chairman of the new US Airways, "is supposed to be worker-friendly." She's hoping Parker and the new airline will listen to money-saving suggestions from frontline people, ideas that have been cast aside to this point. Parker is "saying he realizes the employees are an asset, and I hope in the long run, they prove that ... and we get rewarded for it," said Scott, who was disgusted with former executives walking away from the company with millions. "Everybody's ready for a change," she said. "Everybody knows the economy's bad, but hopefully, there's a turnaround. And when it does turn around, hopefully, they'll start giving back instead of just giving to the stockholders and the people at the top." The migration of money to top executives in this merger plan proved a disappointment to US Airways pilot Fred Freshwater. As part of the plan, 11 top executives will share in a $12 million cash payment, the Associated Press reported. US Airways CEO Bruce Lakefield, who will be vice chairman of the new airline, will receive about four times his salary, $1.7 million. "I'm certainly happy for the employees in that the merger provides a future promise of jobs, although at this point we're unsure of how many," said Freshwater, who lives in Robinson Township. "But I am quite disappointed in that, once again, the bankruptcy judge, Judge (Stephen) Mitchell, has given blanket approval for these 'valuable' managers to, once again, abscond with a large chunk of the funds that the airline has stated it so sorely needs." From usairways at vision.moundalexis.com Mon Sep 19 22:40:35 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 19 Sep 2005 18:40:35 -0400 (EDT) Subject: [US Airways] Inside the Issue: The Future of US Airways Message-ID: <20050919183903.Q673-100000@vision.moundalexis.com> 19 September 2005 ; Airport Business Inside the Issue: The Future of US Airways http://www.airportbusiness.com/article/article.jsp?id=3574 --- TONY MECIA Staff Writer via Knight Ridder A year ago, as US Airways slid into its second bankruptcy, pundits predicted death. How could it survive, they wondered, amid labor strife, bruising competition and surging fuel prices? Against long odds, Charlotte's dominant carrier found a way. Heading out of bankruptcy, the airline sits poised to merge with America West Airlines this month. Yet for all its Houdini-like escapes, challenges remain. The same dire conditions that led analysts to forecast doom a year ago continue to bedevil the airline industry. Last week, Delta Air Lines and Northwest Airlines became the latest carriers to succumb to bankruptcy protection. Given the tremendous challenges that continue to torpedo airlines, how long can the reborn US Airways survive? Analysts say money pouring into the merger should allow the airline to stay afloat for at least a year or two. Beyond that, they say, its fate rests on a mix of management skill and raw luck. Cash on hand US Airways' biggest protection against immediate problems is its pile of cash.When the America West deal closes, scheduled for Sept. 27, the combined airline expects to have about $2.5 billion on hand. The money comes from the airlines' current holdings and the sale of some assets, plus new money from a variety of investors and vendors. It's a lot of money for a company expecting about $10 billion in annual revenue, says Bob Mann, an airline analyst who's the financial adviser for America West's pilots' union. "Cash is king," he said. That stockpile will allow US Airways to endure repeated quarterly losses. It forecasts a $65 million loss in 2006 before turning $316 million in profit in 2007, according to court filings. But if those projections are optimistic -- and bankruptcy-court projections are often rosy -- the airline has a cushion. Leaders of the new company say they aren't planning any spending binges. "It's not in our DNA," Scott Kirby, the airline's executive vice president for sales and marketing, said in a recent interview. Planning for savings Yet to operate a successful airline, Kirby and his colleagues must do more than simply husband their cash. Since announcing merger plans in May, America West chief Doug Parker has made his case -- to analysts, investors, employees and the news media -- about how they'll make money combining the two carriers. The crux of the plan is this: Merge the airlines, eliminate overlapping management and software, cut 60 planes from the fleet, and gain additional passengers from having a route system that stretches from Hawaii to the West Coast to the Caribbean to Europe. The airline expects those changes alone to save at least $600 million a year. Parker's predictions are gaining converts. Over the summer, the merger continued to attract new investors, bringing total outside equity to $565 million, up more than $200 million since the deal was announced. Wall Street likes the deal, too. Since mid-May, America West's stock has risen 56 percent, closing Friday at $7.51. Parker, 43, is widely viewed as one of the industry's most promising leaders. He took over America West two weeks before the 9-11 attacks, yet steered it to a profit in 2003. The company lost money last year, but far less than most of its peers. For the merger to succeed, Parker's team must continue to cut costs as it aligns flight schedules, ramps up marketing and manages what could be a tricky integration of labor groups, analysts say. Because of steep cost-cutting in bankruptcy court, the new US Airways is expected to have lower costs than other old-line carriers. John Luth, chief executive of Seabury Group, which helped structure the deal, said in an interview this summer that the merger's success "is reducible down to executable management tasks, which aren't rocket-scientist-level kinds of tasks. ... They are things that can be accomplished with planning and effort and good management." Fuel prices, competition Still, with four of the country's top-seven carriers operating in bankruptcy court, it is becoming clear that airlines' financial woes are in large part an industrywide phenomenon, regardless of management skill. In other words, going forward, US Airways needs luck.The two major wildcards: oil prices and the competitive landscape. If fuel prices recede, US Airways and other airlines can make money. If not, they almost certainly won't. "It floats all boats or sinks all boats," said Mann, the analyst. US Airways' financial projections, devised over the summer, are based on an average price per barrel at $57.60 in 2006 and $56.67 in 2007. Oil futures closed Friday at $63 a barrel. Vaughn Cordle, chief executive of AirlineForecasts, estimates that US Airways will spend $460 million more on fuel next year than it estimated this summer. At the same time, US Airways' fortunes also depend on its competitors' fate. Parker and others are banking on the industry trimming planes -- something that seems certain after last week's bankruptcy filings by Delta and Northwest. A JPMorgan analyst wrote last week that he expects Delta to shrink by 15 percent, and Northwest's CEO said his airline intends to reduce its fleet. The way US Airways sees it, fewer planes means less competition, and less competition means higher fares -- and healthier revenue. Last week, Parker said the airline's revenue projections already are beating earlier forecasts. Some analysts, though, say revenue increases might be hard to sustain. Low-fare rivals, such as Southwest and JetBlue, plan to add 445 planes in the coming years, increasing their fleets by one-third. More planes would suppress fares. "The real problem for these guys is that the traditional network carriers have been shrinking a little bit, but the low-fare guys are still growing," said Alan Sbarra, a former United financial analyst who became a consultant. The first indication of the new US Airways' performance will come in late January. Then, analysts can compare its performance in the last three months of 2005 with financial projections devised over the summer. The goal? Lose $204 million, or less. From usairways at vision.moundalexis.com Tue Sep 20 11:40:56 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 20 Sep 2005 07:40:56 -0400 (EDT) Subject: [US Airways] US Airways vendors eager to do business Message-ID: <20050920073951.T673-100000@vision.moundalexis.com> 20 September 2005 ; Pittsburgh Tribune-Review US Airways vendors eager to do business http://pittsburghlive.com/x/tribune-review/business/s_375853.html --- By Ron DaParma TRIBUNE-REVIEW REAL ESTATE WRITER Suppliers to US Airways, even those who have been burned twice with unpaid bills in repeat bankruptcies, say they are eager to keep doing business with the new airline being formed in the merger with America West. "I look forward to continue to do business with them," said David Duffy, president of Central Maintenance & Service Co., of Crafton. "I'm glad to see them coming out of bankruptcy. It's just good for Pittsburgh," said Duffy, whose company is one of hundreds of vendors, suppliers and service providers who likely will be dealing with the airline once again, this time after it completes its merger with America West Airlines, of Phoenix, Ariz. Following a bankruptcy court judge's approval on Friday, the merger of US Airways and American West is expected to be completed as soon as a week from today. Duffy's company, which employs about 300, is a longtime US Airways vendor, providing janitorial and maintenance services for offices leased by the airline in Green Tree. It is listed as an unsecured creditor in US Airways' latest bankruptcy, with a claim for debt listed at $2,449. "We had a claim just about the same size in the company's last bankruptcy, but we still have not been paid," he said. Unsecured creditors such as Duffy stand in line for payment behind so-called "priority" and "secured" claimants in bankruptcy, such as lenders and government agencies, who collectively are owned billions of dollars in the US Airways case. As such, they often find thenselves scraping for pennies on the dollar for their claims. Under US Airways' bankruptcy reorganization plan, companies such as Central Maintenance with claims of less than $50,0000 stand to receive only 10 cents on the dollar in cash for their claims. Overall, a claims register of close to 700 pages of US Airways' creditors shows more than 90 creditors with Pittsburgh-area ZIP codes in the current bankruptcy case, including more than 60 unsecured claimants. Chris Schueller, a bankruptcy attorney at Buchanan Ingersoll, Downtown, said it's difficult for trade vendors to shed contracts with airlines, even given the historic instability of the industry, particularly over the past four years. "It's difficult for a businessman to walk away from a potential profit," he said. But he added, "Clearly, anyone doing business with airlines is taking on a significant amount of risk." "We've been doing business with US Airways since they merged with Piedmont Airline in the mid-1980s," said Michael Grossman, president of Castle Aviation, a small commuter airline that does business in the Akron-Canton, Ohio, area. The company, whose unsecured claim is $29,930, also would be in line to receive only 10 cents on the dollar. "We got some money back (under the company's last bankruptcy) and expect to get a little bit back this time," he said. Companies such as these should be confident going forward that the merged airline will be successful, said Phil Gee, spokesman for America West. "With $2.5 billion in cash on hand, our balance sheet will be one of the strongest in the industry. We have some of the lowest operating costs in the industry, and we have a great route system that complement each other," Gee said. "I think that puts us in a great position." "We have dealt with US Airways for decades. They are a valued customer, and we are looking forward to continuing to support them," said Chris Mason, spokesman for AAR Corp., of Wood Dale, Ill., near Chicago's O'Hare Airport. The company's Aircraft Component Services unit was owed more than $58,000 when US Airways filed for its latest bankruptcy. LSG Skychefs, which provides in-flight dining services for more than 270 airlines including US Airways in Pittsburgh, was owed $2.5 million in the airline's first bankruptcy in 2002 and received about $51,000 in stock. This time around, the Irving, Texas-based company is owed another $2.6 million. A spokeswoman declined to comment on its business with US Airways. Hotels, cab and limousine companies, landlords and attorneys are among those listed as unsecured creditors of the airline. So too is Duquesne Light, with a claim of more than $64,978 for utility services. The company also had a claim of $94,788 in US Airways last bankruptcy, for which it received about four cents on the dollar, said spokesman Joe Balaban. The Allegheny County Airport Authority, which oversees Pittsburgh International Airport, also is an unsecured creditor. The authority, however, expects to receive all $1.43 million of its claims, said attorney Eric Smith. The amount represents back-due US Airways payments on hangar and terminal space, plus fuel. Jim Turcott, general manager of the Pitt-Greenville Airport Authority in Greenville, N.C., said his airport, while losing money in both of US Airways' bankruptcies, is pleased to have a carrier still serving this town of 70,000. He said the authority will not let its losses get in the way of continuing to do business with the merged airline. "We're certainly not going to cut off our nose to spite our face," he said. Another entity with a large claim is the Moon Area School District, which is asking for $1.5 million. School District Solicitor Jack Cambest said the claim is for repairs needed at two former elementary school buildings that the airline formerly leased for two training centers now abandoned. The district is consulting with attorneys to determine expectations for recovering some of its claim and how to proceed to do so, Cambest said. From usairways at vision.moundalexis.com Tue Sep 20 11:42:21 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 20 Sep 2005 07:42:21 -0400 (EDT) Subject: [US Airways] US Airways, America West merger to come in steps Message-ID: <20050920074057.O673-100000@vision.moundalexis.com> 19 September 2005 ; USA Today US Airways, America West merger to come in steps http://www.usatoday.com/money/biztravel/2005-09-19-usairways-americawest-merger_x.htm --- By Barbara De Lollis, USA TODAY After more than a year in bankruptcy protection, US Airways is a week away from combining with America West to form a new airline. The merger, announced in May, cleared its final hurdle last week with approval from a bankruptcy judge in Alexandria, Va. The combination of No. 7 US Airways and No. 8 America West will form the USA's fifth-largest airline. The new airline, to be called US Airways, will be bigger than Southwest and offer flights to international destinations in Europe, Latin America and the Caribbean. Many details about the new US Airways won't be disclosed until after the deal closes. Until then, here are some ways to avoid confusion: Q: When do they merge? A: The merger is scheduled to close next Tuesday, but fully integrating the airlines is expected to take two years. No dramatic changes in service are expected in the near term. Q: When will the America West brand disappear? A: In 2007. It will be gradually phased out, beginning with airplane exteriors and airport signage. Q: Where should customers buy tickets after the merger? A: Continue to book with the airline or agency used before the merger. Both carriers' websites and their toll-free numbers will be maintained for about 15 months, as the airlines switch to a single reservation system. Eventually, passengers will be able to buy tickets for one carrier through the other's system. Q: What are their Web addresses and toll free numbers? A: America West: www.americawest.com; 800-235-9292. US Airways: www.usairways.com; 800-428-4322. Q: Where do I go to change a ticket after the merger? A: For now, stick with the airline named on the ticket. Q: As the America West name is phased out, how will ticket holders arriving at the airport know where to go? A: This will be a concern for passengers at 38 airports served by both carriers, such as Los Angeles, Miami, Las Vegas, Washington Dulles and Boston. For roughly the next two weeks, passengers should expect to check in at the airline named on their tickets and go to its gate area. But in the next several months, most of US Airways and America West check-in areas and gates will be consolidated. Look for new signs. At the Phoenix airport, where America West is the No. 1 carrier, US Airways flights will soon move into Terminal 4 from Terminal 2. The airport plans to have staff in lobbies to help reduce passenger confusion when the move occurs. Q: What happens with my frequent-flier miles? A: No immediate changes. FlightFund members will still earn and redeem through America West, and Dividend Miles members through US Airways. But by next month, members of one loyalty plan will be able to earn and spend miles on the partner airline. That means FlightFund members, for instance, will be able to use credits for a US Airways flight to London. Airline executives expect to integrate US Airways' Dividend Miles and America West's FlightFund into a single Dividend Miles program early next year, and all credits will be preserved. Details have not yet been disclosed. Q: Should I expect changes to the first-class cabin? A: Management plans no changes on either carrier. Q: Will any airport clubs close? A: No. The airlines don't have overlap with their clubs. From usairways at vision.moundalexis.com Tue Sep 20 11:43:16 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 20 Sep 2005 07:43:16 -0400 (EDT) Subject: [US Airways] US Airways' CEO takes off on 1-day roadshow Message-ID: <20050920074222.U673-100000@vision.moundalexis.com> 19 September 2005 ; USA Today US Airways' CEO takes off on 1-day roadshow http://www.usatoday.com/money/biztravel/2005-09-19-usairways-ceo_x.htm --- By Dawn Gilbertson, The Arizona Republic TEMPE, Ariz. -- The merger with Arlington, Va.-based US Airways has kept America West CEO Douglas Parker on the run since February. But Aug. 23 stands out as his craziest travel day. Parker, 43, led a one-day roadshow to unveil for employees the first plane with the new US Airways paint scheme. It started at 6 a.m. in a Philadelphia hotel and ended 15 hours and 2,800 miles later at America West's hangar at the Phoenix airport. Stops on the way: Pittsburgh, Charlotte and Las Vegas. Parker, US Airways CEO Bruce Lakefield and a plane full of employees and union officials made the rounds. On the flight to Pittsburgh, the head of America West's pilots union was sitting diagonally from Parker on the Airbus 320. J.R. Baker joked that he knew the service would be good since Parker was so close. In Pittsburgh, crowds were thick, and US Airways employees crowded around Parker to meet him and take photos with him. On the flight to Charlotte, a flight attendant asked him if he felt like a movie star now. "I wouldn't go that far," he said. On the longest leg of the trip, to Las Vegas, Parker stretched out in his window seat. In Phoenix, Parker's wife and kids were in the front row. Parker picked up his kindergartner and gave her a kiss and a hug before going onstage. The Black Eyed Peas' Let's Get It Started played on the loudspeakers. Less than 24 hours later, Parker was back on a plane, this time to Washington, D.C., for US Airways creditor committee meetings. From usairways at vision.moundalexis.com Tue Sep 20 12:24:49 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 20 Sep 2005 08:24:49 -0400 (EDT) Subject: [US Airways] US Airways Group, Inc. Announces Proposed Convertible Notes Offering Message-ID: <20050920082345.U673-100000@vision.moundalexis.com> 20 September 2005 ; PR Newswire US Airways Group, Inc. Announces Proposed Convertible Notes Offering http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-20-2005/0004110959 --- ARLINGTON, Va., Sept. 20 /PRNewswire-FirstCall/ -- US Airways Group, Inc. today announced its intention to sell, subject to market and other conditions, convertible notes, valued at a $125 million issue price, due 2020. The notes would be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (the "Securities Act"). The interest rate, conversion rights (including the terms upon which the notes will be convertible into US Airways Group, Inc. common stock) and offering price are to be determined by negotiations between US Airways Group, Inc. and the initial purchasers of the notes. This announcement is neither an offer to sell nor a solicitation to buy any of these notes and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The notes being offered and the common stock issuable upon conversion of the notes have not been registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration under, or an applicable exemption from, the registration requirements of the Securities Act and applicable state securities laws. From usairways at vision.moundalexis.com Tue Sep 20 12:25:31 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 20 Sep 2005 08:25:31 -0400 (EDT) Subject: [US Airways] US Airways sets offering terms at 8.5 mln shares Message-ID: <20050920082450.M673-100000@vision.moundalexis.com> 20 September 2005 ; Reuters US Airways sets offering terms at 8.5 mln shares http://today.reuters.com/investing/financeArticle.aspx?type=newIssuesNews&storyID=2005-09-20T111617Z_01_N20355605_RTRIDST_0_AIRLINES-USAIRWAYS.XML --- WASHINGTON, Sept 20 (Reuters) - US Airways Group Inc. set on Tuesday the terms of its share offering at 8.5 million shares but did not set a public offering price. The airline said in an amended filing with the U.S. Securities and Exchange Commission that underwriters Merrill Lynch & Co. and Citigroup will have the option to buy an additional 1.275 million shares to cover over-allotments. A federal judge on Friday approved US Airways' plan to exit bankruptcy and merger with America West Airlines Inc., capping US Airways' second bankruptcy restructuring in three years. US Airways said in the filing that it expects to receive $150 million in proceeds from the offering, which it will use for general corporate purposes, including the possible redemption or repurchase of other securities of the combined company. From usairways at vision.moundalexis.com Tue Sep 20 22:34:29 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 20 Sep 2005 18:34:29 -0400 (EDT) Subject: [US Airways] US Airways to Sell $275M in Stock, Debt Message-ID: <20050920183351.D673-100000@vision.moundalexis.com> 20 September 2005 ; MSN Money (AP) US Airways to Sell $275M in Stock, Debt http://moneycentral.msn.com/inc/news/providerredir.asp?feed=AP&Date=20050920&ID=5126204 --- NEW YORK (AP) - US Airways Group Inc. said Tuesday that it plans to raise $275 million through debt and stock sales. The move comes as the Arlington, Va., carrier is close to completing its planned merger with America West Holding Corp. following a federal judge's approval of its plan to exit bankruptcy on Friday. The $125 million in debt will mature in 2020 and be convertible into stock, but the company said it will negotiate other details -- including the interest rate, conversion rights and offering price -- with the initial buyers. Separately Tuesday, the company registered to sell 8.5 million common shares following the merger with Tempe, Ariz.-based America West. If the shares sell at the proposed maximum offering price of $17.65, US Airways will receive about $150 million. The company could raise another $225 million if the equity sale is oversubscribed and underwriters use their overallotment option. US Airways shares fell 6 cents, or 15.5 percent, to 30 cents in over-the-counter trading, while New York Stock Exchange-listed shares of America West rose 31 cents, or 4.1 percent, to $7.82. The two companies plan to trade on the New York Stock Exchange under the symbol "LCC" -- for low-cost carrier. From usairways at vision.moundalexis.com Tue Sep 20 22:35:29 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 20 Sep 2005 18:35:29 -0400 (EDT) Subject: [US Airways] Changeover from AmWest to US Airways won't be instant Message-ID: <20050920183453.B673-100000@vision.moundalexis.com> 20 September 2005 ; Las Vegas Sun Changeover from AmWest to US Airways won't be instant http://www.lasvegassun.com/sunbin/stories/business/2005/sep/20/519385520.html --- By Richard N. Velotta McCarran International Airport's second-largest passenger carrier -- America West Airlines -- officially becomes US Airways tomorrow, but it's going to take a few months before the transition is complete. The two airlines cleared the last hurdles in their bid to merge last week and airline officials said Wednesday is the official date the transition begins. For now, passengers ticketed on America West should continue to go to that airline's ticket counter and gates and US Airways fliers should go to that airline's counters and gates. US Airways' counter is on the north end of a row of ticket counters at the airport and the airline uses McCarran's D gates. America West's counters are just to the south of the midpoint of the row and the airline uses the A and B gates. Eventually, said Rosemary Vassiliadis, deputy director of the Clark County Department of Aviation, the merged airline would have one counter and flights likely would arrive and depart from the A and B gates. "We don't want to exasperate travelers," Vassiliadis said. "They (the airlines) have a couple of flights that overlap each other. Right now, we're making sure that they have available gating and there are no delays. Once that gets resolved, we'll move them over accordingly." Vassiliadis said McCarran officials are optimistic that the transition can be completed by the end of the year. "We're working furiously on it," she said. "We plan to get an information sheet out to taxi drivers to make sure passengers are delivered to the right location." The merger, first announced in May, will join more than 30,000 US Airways and 14,000 America West workers, including more than 1,000 based in Las Vegas. America West currently has 145 jet and America West Express commuter flights each day to and from McCarran while US Airways has nine. The merged airline will be known as US Airways. The blended fleet of more than 400 aircraft eventually will be painted with a new color scheme, with four themed aircraft designed to pay tribute to the four airlines that, through mergers and acquisitions, became US Airways. America West, which operates a hub at McCarran, and America West Express have flights to 73 destinations from Las Vegas, while US Airways flies nonstop to and from its Philadelphia, Pittsburgh and Charlotte, N.C. hubs. America West officials said passengers can continue to use the two airlines' Internet sites -- www.americawest.com and www.usairways.com -- and their respective reservation numbers. Eventually, those, too, will be blended. McCarran's SpeedCheck computerized ticketing kiosks include both airlines and airline officials said online check-in is still available 24 hours before flight time. Customers enrolled in either company's frequent-flier programs will have their miles honored by the merged company and persons enrolled in both programs will have their miles added together in the weeks ahead. From usairways at vision.moundalexis.com Tue Sep 20 22:36:28 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 20 Sep 2005 18:36:28 -0400 (EDT) Subject: [US Airways] US Airways to raise $297M with new stock and private offering Message-ID: <20050920183549.H673-100000@vision.moundalexis.com> 20 September 2005 ; Washington Business Journal US Airways to raise $297M with new stock and private offering http://www.bizjournals.com/washington/stories/2005/09/19/daily8.html?jst=b_ln_h --- Jeff Clabaugh Staff Reporter US Airways, which expects to exit bankruptcy protection by next month, has filed to raise as much as $172.5 million through the sale of new stock. It will also raise $125 million in a private offering of private notes. The airline, which is merging with America West, filed with the Securities and Exchange Commission to sell as many as 9.78 million shares. Merrill Lynch will manage the stock offering, which will take place after the America West merger closes, US Airways said in the filing. Separately, US Airways said it will sell convertible notes to institutional investors, valued at $125 million and due in 2020. As US Airways (OTCBB: UAIRQ) prepares to exit bankruptcy protection for the second time in two years, the list of fellow carriers operating under court protection continues to grow. Last week, both Northwest Airlines (OTCBB: NWACQ) and Delta Airlines (NYSE: DAL) filed for Chapter 11 protection. The Detroit News reported Tuesday that Independence Air (NASDAQ: FLYI) was likely to file for bankruptcy protection as early as this week. From usairways at vision.moundalexis.com Wed Sep 21 12:35:50 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 21 Sep 2005 08:35:50 -0400 (EDT) Subject: [US Airways] US Airways watch Message-ID: <20050921083444.H673-100000@vision.moundalexis.com> 21 September 2005 ; Pittsburgh Post-Gazette US Airways watch http://www.post-gazette.com/pg/05264/574929.stm By Dan Fitzpatrick, Pittsburgh Post-Gazette To save money, US Airways has begun deactivating arm-rest power outlets on its 111 narrow-body Airbus jets as the planes come in for maintenance. The outlets, used by some passengers as a power source for laptops or other electronic devices, will remain on the carrier's Airbus A330s, the wide-body planes that fly across the Atlantic Ocean. There are no outlets on US Airways' Boeing-made planes. The outlet deactivation on the Airbus 319s, 320s and 321s began last week, according to a US Airways spokeswoman. US Airways intends to raise an additional $275 million through the sale of debt and stock. The $125 million in debt will mature in 2020. The company could raise another $150 million by selling 8.5 million common shares following a merger with America West Airlines, a deal that is expected to close on Tuesday. There are new reports that discount carrier Independence Air, which flies to Pittsburgh International Airport from Washington Dulles International Airport, may file for bankruptcy protection as early as this week. The cash-strapped airline first warned about a possible filing last month. From usairways at vision.moundalexis.com Wed Sep 21 12:37:44 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 21 Sep 2005 08:37:44 -0400 (EDT) Subject: [US Airways] US Airways And America West Merger Increases Skymedia Reach From 18, 000 To 46, 000 Passenger Seats Message-ID: <20050921083552.S673-100000@vision.moundalexis.com> 21 September 2005 ; PR Web US Airways And America West Merger Increases Skymedia Reach From 18,000 To 46,000 Passenger Seats http://www.prweb.com/releases/2005/9/prweb287354.htm --- US Airways And America West Merger Increases Skymedia Reach From 18,000 To 46,000 Passenger Seats - Reach 20% of all domestic airline passengers with SkyMedia. New York (PRWEB) September 21, 2005 -- SkyMedia International, the company that introduced airline tray-table advertising to North America in 2003, today announced that it will roll out advertising on US Airways. passenger tray tables on October 3 when the long anticipated merger between America West (NYSE:AWA) and US Airways (UAIRQ) becomes complete. "We are very pleased," said Nick Pajic, President & CEO of SkyMedia. Pajic continued, "This represents an increase of more than 250% in airplanes and seatback tray table inventory. We are going from 18,000 tray table ads and 140 airplanes to 46,000 tray table ads and 340 airplanes." SkyMedia revolutionized advertising message consumption rate and recall when it first launched advertising on the airline passengers tray tables in December of 2003 onboard America West. The merger paves the way for a much larger market share -- 20% of all domestic airline travelers. Companies like Mercedes-Benz, Bank of America, General Motors Corporation, Verizon Wireless, Ameritrade, Discovery/Travel Channel, A&E Networks, History Channel and many others have already taken advantage of this new and powerful media platform. "Advertisers win because they can deliver an ad message to the upscale and captive audience in an environment that is free of distractions and at a time when consumers can pay attention and think about what is being advertised" said Morgen Van Buren, Director of Marketing & Communications for SkyMedia. Unlike other mass media platforms that compete for consumer attention and deliver ad message in seconds, SkyMedia delivers ad message during one to six hour flights to millions of affluent business and leisure airline travelers. This massive ad consumption yields 92% recall by 98.6% of airline passengers that use tray tables during flight. SkyMedia will have airline seats and tray tables on display at the OAAA Advertising Week event at the Metropolitan South Pavilion, 125 W. 18th Street, New York, NY on September 28, 2005, from 2pm to 9pm EDT. From usairways at vision.moundalexis.com Wed Sep 21 12:42:07 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 21 Sep 2005 08:42:07 -0400 (EDT) Subject: [US Airways] US Airways, America West outline potential problems Message-ID: <20050921083821.T673-100000@vision.moundalexis.com> 21 September 2005 ; Beaver County Times Allegheny Times US Airways, America West outline potential problems http://www.timesonline.com/site/news.cfm?newsid=15248743 --- Karen Ferrick-Roman, Times Staff The dark side of what has been promoted as the rosy merger between US Airways and America West Airlines surfaced in an amended registration statement filed Tuesday with the federal Securities and Exchange Commission. Because all companies need to spell out risks, some of the listings seem to come directly from the Joe Sixpack Cover Your Butt Common Sense School of Management. For instance, the documents refer to still-lingering effects on security and costs of the Sept. 11, 2001, terrorist attacks, as well as competition and historically high fuel prices. It offers the simple statement that "we may not perform as well financially as we expect following the merger." The risk listing took nine pages of the 606-page document. Overall, the listing is "pretty typical," said Rick Rose, a stockholder and corporate lawyer with Buchanan Ingersoll in Pittsburgh. "They don't surprise me. This is a risky company; it's coming out of its second bankruptcy." Here are some of the factors. * Significant ongoing operating losses at US Airways Group. Despite about $2 billion in labor-cost reductions and other cost savings, US Airways keeps losing money, a point long ago made by Randy Nutter, chairman of the Geneva College business department and an airline expert. These losses are expected to follow the airline through 2006, the filing said. * Possible labor unrest. Many registration statements consider labor issues, but this points out that America West is or will be negotiating with five of its seven labor groups. One is negotiating an initial contract, three have existing contracts and a fifth contract is open for negotiation next year. US Airways' contracts are intact through Dec. 31, 2009. * Integration "will present significant challenges." Meshing the functions, procedures and operations, as well as staffs, of the two airlines could be so all-consuming that management might have time and attention diverted from running the airline, the filing said. While a true risk, Rose said, "it's inherent in every merger. * Possible problems with vendors. In US Airways' second bankruptcy, some restaurants at Pittsburgh International Airport stopped accepting its food vouchers after being previously shortchanged. America West was in bankruptcy from 1991 to 1994. Spokesman Phil Gee was uncertain whether the company had problems with vendors afterward. * Few shareholders own lots of stock. Investors and the airlines themselves will own large portions of the 9.775 million new US Airways shares. Other stockholders will have a small impact, Rose said. * Stipulations make it hard to change the board and discourage takeovers. The provisions themselves have pros and cons, Rose said. Those in support of anti-takeover provisions claim management has a better opportunity to focus on business without worrying about takeovers. Those on the opposite side say the move negatively affects shareholders' value, because a corporate raider would be willing to pay a premium for the stock. * US Airways Group still owes. While US Airways cleared most of its debt in bankruptcy, the company still has obligations. The new company is not starting out with a clean slate, but already is responsible for contracts and debts, Rose said. * The highly leveraged company is limited in additional funding. Because the new US Airways will have so much debt, a rise in interest rates could hurt - particularly if the airline depends on variable-rate debts, Rose said. * And then there's the weather and seasonal trends in travel. Aah, Rose said. This might look like a Joe Sixpack School of Management statement, but can have real impact. Look at the absolute havoc wreaked by Hurricane Katrina. And think of the intent of the risk-factors list, Rose said. "It's written for investors assumed not to know about the industry and designed to protect the company because someone can't argue later that weather can't affect airlines." From usairways at vision.moundalexis.com Thu Sep 22 13:08:37 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 22 Sep 2005 09:08:37 -0400 (EDT) Subject: [US Airways] SkyMedia to launch ads on US Airways Message-ID: <20050922090724.F673-100000@vision.moundalexis.com> 22 September 2005 ; Charlotte Business Journal SkyMedia to launch ads on US Airways http://charlotte.bizjournals.com/charlotte/stories/2005/09/19/daily23.html --- SkyMedia International will roll out advertising on US Airways Group Inc. passenger-tray tables after the merger of America West Holdings Corp. and US Airways is completed. SkyMedia, which is based in Phoenix, delivers advertising on flights lasting one to six hours. The company says its advertising yields 92 percent recall by 98.6 percent of airline passengers that use their tray tables during a flight. "We are very pleased," says Nick Pajic, chief executive of SkyMedia. "This represents an increase of more than 250% in airplanes and seatback tray table inventory. We are going from 18,000 tray table ads and 140 airplanes to 46,000 tray table ads and 340 airplanes." Financial terms of the agreement weren't disclosed. SkyMedia launched its advertising on airline passenger-tray tables in December 2003 onboard America West aircraft. Last week, a federal judge approved Virginia-based US Airways' Chapter 11 reorganization plan, clearing the way for its $1.5 billion merger with America West. The merger could take place as soon as Tuesday. The consolidated company will take the US Airways name and be headed by America West Chief Executive Doug Parker. US Airways CEO Bruce Lakefield will be vice chairman following the merger. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. Arizona-based America West (NYSE:AWA) serves more than 90 destinations in the United States, Canada, Mexico and Costa Rica. US Airways (OTCBB:UAIRQ) operates 34 gates at Charlotte/Douglas International Airport, its largest hub. From usairways at vision.moundalexis.com Thu Sep 22 13:09:21 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 22 Sep 2005 09:09:21 -0400 (EDT) Subject: [US Airways] US Airways sets terms of share offering Message-ID: <20050922090839.P673-100000@vision.moundalexis.com> 22 September 2005 ; Triangle Business Journal US Airways sets terms of share offering http://triangle.bizjournals.com/triangle/stories/2005/09/19/daily18.html --- US Airways Group Inc. has filed to raise as much as $172.5 million through the sale of new stock. The airline, which provides service at Raleigh-Durham International Airport, has filed with the Securities and Exchange Commission to sell as many as 9.78 million shares. Merrill Lynch will manage the stock offering. US Airways, which may complete its merger with Arizona-based America West Holdings Corp. (NYSE:AWA) as soon as Sept. 27, says it will use the proceeds for general corporate purposes, including the possible redemption or repurchase of other securities of the combined company. US Airways (OTCBB:UAIRQ) also plans to sell $125 million in convertible notes. The notes, which become due in 2020, would be sold to qualified institutional buyers. The interest rate will be negotiated by the airline and the initial purchasers of the notes. Last week, a federal judge approved the Virginia-based airline's Chapter 11 reorganization plan, clearing the way for its $1.5 billion merger with America West. The new company will take the US Airways name and be headed by America West Chief Executive Doug Parker. US Airways CEO Bruce Lakefield will be vice chairman following the merger. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz. From usairways at vision.moundalexis.com Thu Sep 22 13:15:06 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 22 Sep 2005 09:15:06 -0400 (EDT) Subject: [US Airways] District claims US Airways owes it money Message-ID: <20050922091357.U673-100000@vision.moundalexis.com> 22 September 2005 ; Pittsburgh Tribune-Review District claims US Airways owes it money http://pittsburghlive.com/x/tribune-review/trib/newssummary/s_376660.html --- By Bobby Kerlik TRIBUNE-REVIEW Chalk up one more unsecured creditor that says US Airways owes it money -- the Moon Area School District. The airline had leased two former school buildings and turned them into training centers for pilots and attendants. However, the airline broke its lease with the school district after it declared bankruptcy last year, school board President Mark Scappe said. Scappe said the airline is obligated to return the buildings to the condition they were in when first leased. School officials estimate it will cost more than $1 million to return the buildings to classroom form. US Airways removed walls for flight simulators and rewired parts of the buildings, while classrooms were transformed into offices, Scappe said. "We're hoping to get some money back. That's what the agreement said," he said. "Our counsel has been talking with US Airways about this." The district received about $550,000 annually for renting McCormick and Carnot elementary schools. Scappe, who was not on the board when the buildings were first leased, said he believes the buildings were used by the airlines for more than 10 years. US Airways spokeswoman Amy Kudwa said those operations were consolidated into larger training centers in Charlotte, N.C. "That claim will be administered under normal unsecured claim procedures," Kudwa said. "(The school) will receive a percentage of that claim." The district raised taxes 0.25 mills last year. School officials blamed part of the problem on the loss of lease revenue from US Airways. The airline rented the buildings month-to-month after having rejected the annual leases while in bankruptcy, Superintendent Alex Meta said. The airline paid $280,000 a year for its use of Carnot and $271,444 a year for McCormick. Meta said school officials are considering the reopening of McCormick because of increasing enrollment. "They removed the stage in the multipurpose room," he said. "That's necessary in an elementary school." During upcoming projects at other schools, Carnot might be used to house contractors, rather than have them put up trailers, Meta said. A long-term option for Carnot is razing the building so it can be replaced with tennis courts, Scappe said. From usairways at vision.moundalexis.com Thu Sep 22 22:28:49 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 22 Sep 2005 18:28:49 -0400 (EDT) Subject: [US Airways] US Airways Completes Sale of Aircraft and Slot Assets to Republic Airways Message-ID: <20050922182749.N673-100000@vision.moundalexis.com> 22 September 2005 ; PR Newswire US Airways Completes Sale of Aircraft and Slot Assets to Republic Airways http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-22-2005/0004113680 --- ARLINGTON, Va., Sept. 22 /PRNewswire-FirstCall/ -- US Airways Group Inc. has today completed the sale of certain Embraer regional jet aircraft and slot assets to Republic Airways Holdings, generating approximately $90 million in liquidity for US Airways as it completes its Chapter 11 restructuring and merger with America West Airlines. The regional jets and the slots will continue to operate as US Airways Express. Under the terms of the asset sale agreement, Republic will purchase or assume the leases of 25 Embraer 170 aircraft from US Airways, and will operate them in the US Airways network under a regional jet service agreement that has been negotiated and approved by the U.S. Bankruptcy Court. Three additional Embraer 170s that had been slated for delivery to US Airways were purchased by Republic directly from the manufacturer. In addition, US Airways has sold, and then leased back from Republic, commuter slots at Ronald Reagan Washington National and New York LaGuardia airports. "Republic Airways has been operating as a US Airways Express carrier since earlier this month, and we are pleased to complete this additional step in our expanded relationship as well as in our restructuring efforts," said Bruce R. Lakefield, US Airways president and chief executive officer. Other Embraer 170 assets, including a flight simulator and spare parts needed to support the aircraft operations, also are planned to be part of the transaction. The purchase of these assets is expected to be completed in the next few weeks. As previously announced by US Airways, the Republic asset sale transaction represents approximately $100 million in cash that is built into the Plan of Reorganization approved by the U.S. Bankruptcy Court on Sept. 16, 2005. From usairways at vision.moundalexis.com Fri Sep 23 02:46:06 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 22 Sep 2005 22:46:06 -0400 (EDT) Subject: [US Airways] US Airways sells aircraft Message-ID: <20050922224521.S673-100000@vision.moundalexis.com> 24 September 2005 ; Philadelpha Business Journal US Airways sells aircraft http://philadelphia.bizjournals.com/philadelphia/stories/2005/09/19/daily40.html --- US Airways Group Inc. said Thursday that it sold aircraft and slot assets to Republic Airways Holdings as part of US Airways' Chapter 11 bankruptcy reorganization. The sale was part of the US Airways (OTCBB: UAIRQ) bankruptcy plan, approved last week, that cleared the way for US Airways' imminent merger with America West Holdings Corp. (NYSE: AWA). Republic Airways will buy or take over leases on 25 existing Embraer 170 aircraft, US Airways said. It will also take three new Embraer 170s that had been scheduled for delivery to US Airways. The planes will all be part of the US Airways network "under a regional jet service agreement that has been negotiated and approved by the U.S. Bankruptcy Court," US Airways said in a release. The Republic Airways (NASDAQ: RJET) deal creates $90 million in liquidity for US Airways. "Republic Airways has been operating as a US Airways Express carrier since earlier this month, and we are pleased to complete this additional step in our expanded relationship as well as in our restructuring efforts," said Bruce R. Lakefield, US Airways president and chief executive officer. The merged company will take the US Airways name and be headed by America West Chief Executive Doug Parker. Lakefield will be vice chairman following the merger. The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz., home of America West. US Airways is based in Arlington, Va. From usairways at vision.moundalexis.com Fri Sep 23 02:47:00 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 22 Sep 2005 22:47:00 -0400 (EDT) Subject: [US Airways] US Airways to sell more shares Message-ID: <20050922224629.X673-100000@vision.moundalexis.com> 24 September 2005 ; The News & Observer US Airways to sell more shares http://newsobserver.com/business/story/2800380p-9243290c.html --- The Associated Press ARLINGTON, VA. -- US Airways Group will raise as much as $297.5 million from sales of stock and notes to help finance its merger with America West. An offering of as many as 9.78 million shares will help fund the combination with America West, US Airways said in a regulatory filing. The airline also will sell $125 million of convertible notes to institutions and use proceeds to pay a debt to General Electric, US Airways' largest creditor. US Airways is preparing to exit bankruptcy for the second time in two years. From usairways at vision.moundalexis.com Sat Sep 24 14:02:39 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 24 Sep 2005 10:02:39 -0400 (EDT) Subject: [US Airways] US Airways moving 25 regional jets Message-ID: <20050924100229.C673-100000@vision.moundalexis.com> 23 September 2005 ; The Charlotte Observer US Airways moving 25 regional jets http://www.charlotte.com/mld/charlotte/living/travel/12719151.htm --- US Airways has closed its deal to transfer 25 regional jets and takeoff and landing slots at airports in New York and Washington, the airline said Thursday. Republic Airways, based in Indianapolis, is buying the assets and leasing them back to US Airways. The transaction generates about $90 million for US Airways, which is preparing to merge with America West next week. -- tony Mecia From usairways at vision.moundalexis.com Sat Sep 24 14:04:56 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 24 Sep 2005 10:04:56 -0400 (EDT) Subject: [US Airways] US says to sell US Airways, America West loans Message-ID: <20050924100448.A673-100000@vision.moundalexis.com> 23 September 2005 ; Reuters US says to sell US Airways, America West loans http://today.reuters.com/investing/financeArticle.aspx?type=mergersNews&storyID=2005-09-23T210908Z_01_N23648002_RTRIDST_0_AIRLINES-LOANS-UPDATE-2.XML --- By John Crawley WASHINGTON, Sept 23 (Reuters) - The U.S. government wants to significantly lower its financial exposure to commercial airlines by selling $1 billion in federally backed loans for US Airways (UAIRQ.OB) and America West Airlines (AWA.N), the Treasury Department said on Friday. The Air Transportation Stabilization Board said it is working with a financial adviser to assess the remarketing of the two loan guarantees to private investors, officials said. US Airways and America West are merging and hope to close the deal worth more than $1.5 billion on Tuesday. US Airways and America West will create the fifth-largest U.S. commercial airline by passenger volume. The US Airways loan guarantee total is roughly $700 million, while the America West debt is about $300 million. The two agreements were renegotiated after the merger announcement in May and currently have separate repayment schedules. The merger is allowing US Airways to step out of Chapter 11 after a yearlong restructuring during which it cut more than $1 billion in annual costs, downsized operations, cut its work force, and raised $565 million from private investors to fund the America West transaction. "The company has been recapitalized and is in good shape, and we think there's an appetite in the market for the debt without a government guarantee," said Mark Dayton, the stabilization board's executive director. The board, which approved the merger in July, also wants to see if the new US Airways will repurchase more than 7.73 million warrants for stock in the new airline. Equity stakes were a condition in the original loan guarantee agreements with America West in 2002 and US Airways in 2003 and were continued under the merger agreement. The warrants in the new US Airways have an exercise price of $7.27 per share. But US Airways said in a regulatory filing on Friday there was no assurance the two sides would reach an agreement. The loan guarantee for the current US Airways is secured by virtually all of the carrier's bankable assets, like planes, airport gates, and landing slots. The airline has been allowed to sell some of them to raise cash. The $10 billion loan guarantee program was created by Congress after the Sept. 11, 2001, hijack attacks to help struggling airlines and cargo carriers get financing during a time when lenders would not extend the industry any credit. The board's single biggest decision was rejecting United Airlines (UALAQ.OB) for a loan guarantee. The No. 2 airline filed for bankruptcy in 2002 where it remains. Only a few carriers took advantage of the ATSB loans. Many companies were unwilling to give the government a stake in their business in exchange for financing. Typically, the stabilization board would back a substantial portion of a loan underwritten by banks. The board's portfolio of loans has dwindled to a handful with US Airways and America West accounting for the overwhelming majority of its obligation. "The whole point was to bridge these companies to private sector financing," Dayton said. The stabilization board is also exploring options to sell its remaining warrants in World Airways Inc. (WLDA.O) and Frontier Airlines. The government would still secure private financing for World, a passenger and cargo service, and bankrupt ATA Airlines, a unit of ATA Holdings Corp. (ATAHQ.OB). Frontier (FRNT.O) has repaid its loan. Additional reporting by Sarah Edmonds. From usairways at vision.moundalexis.com Sun Sep 25 14:30:28 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 25 Sep 2005 10:30:28 -0400 (EDT) Subject: [US Airways] Born-again US Airways set for takeoff Message-ID: <20050925103016.N673-100000@vision.moundalexis.com> 25 September 2005 ; Pittsburgh Tribune-Review Born-again US Airways set for takeoff http://pittsburghlive.com/x/tribune-review/business/s_377059.html --- By Thomas Olson TRIBUNE-REVIEW The latest chapter in the 56-year life of US Airways, the comeback carrier, opens on or about Tuesday when it exits bankruptcy and completes its merger into America West Airlines. The combined airline, which will fly under the US Airways flag, will be America's largest discount carrier and the sixth-largest overall. Having shed $1.5 billion of industry-high operating costs during bankruptcy, US Airways will operate 3,600 daily departures to 229 cities in North America, Latin America and Europe. Tuesday marks the second time in 2 1/2 years that US Airways has finished a trip through bankruptcy, as well as the second time in four years that it's hitched its future to a merger. But unlike the ill-fated United Airlines deal, this one is going to set sail. "US Airways has made remarkable progress. And they come out with substantial liquidity, so they won't be teetering on the edge like they have been in the past few years," said Dan Kasper, the head of aviation consultant LECG, Cambridge, Mass., referring to the new US Airways' nearly $2.5 billion cash cushion. The turnaround saga also is a tale of two Davids -- Bronner and Bonderman. The latter is a comeback story himself that has Bonderman in control of the new carrier's largest stake. Bronner, head of the Retirement Systems of Alabama, is being left behind by US Airways' second reorganization. The pension group invested $240 million for 37.5 percent control of US Airways during its 2002-2003 bankruptcy. It did so by topping Bonderman's Texas Pacific Group's bid of $200 million. But the Alabama group's equity is wiped out by US Airways' second bankruptcy. Plus Bronner, currently chairman of US Airways, will lose that job after the merger closes. He will be succeeded by Doug Parker, 43, who's had a successful track record running America West. "Dr. Bronner gets one thing out of all this: He gets out of it," said Michael Boyd, head of The Boyd Group, an industry consultancy in Evergreen, Colo. On the other hand, Bonderman, head of Texas Pacific, emerges in a commanding role at the new US Airways. Now the majority owner of America West, Bonderman's group will swap those shares for control of about 18 percent of the combined airline, the largest single stake. Launched in 1983, America West is the only airline established since industry deregulation in 1978 to crack the ranks of the nation's major carriers. But high fuel prices of the early 1990s and high debt from expansion led America West to file for bankruptcy in 1991. With financing from airline affiliates and industry guru Bonderman, America West emerged from bankruptcy in 1994. Two years before, he and Texas Pacific invested $65 million in Continental Airlines, which helped turn around that airline. "Bonderman doesn't get involved in half-way deals. He's where he is today because he only gets involved in sure things," said Boyd. "The airline business is not a game for faint-hearted investors," said Kasper. "The fact they were willing to put money in this tells you they think it has a good chance to succeed." Neither Bonderman nor Bronner would comment for this story, said respective spokesmen. Cost specter A product of several acquisitions over the years, US Airways has long been plagued by high operating costs. Even after the first bankruptcy culled $900 million in labor costs, US Airways still had industry-high costs-per-available-seat-mile, according to U.S. Bureau of Transportation Statistics data. US Airways costs were 15.9 cents per mile in winter 2003, versus No. 2 Delta Air Lines' 13.3 cents. America West was at 7.8 cents, not far from JetBlue Airways, the lowest at 6.1 cents. But the bureau's latest data showed US Airways was the only major carrier -- other than Southwest Airlines -- to shave operating costs last quarter from year-ago levels. Increases came from jet fuel costs that doubled from 2004 levels. Still US Airways' overhead of 15.3 cents per mile remains second-highest, behind the 15.7 cents of Northwest and Continental airlines. US Airways patterned its new personnel costs around America West's, but overhead still suffers from higher costs inherent in its route network, say analysts. That is, it takes more time and fuel to navigate the congested skies and airports of the East Coast than longer-range flights elsewhere. "They still have to change things to get the costs down, as well as undertake a major reorientation of their route system," said Boyd. The analyst said US Airways is still too reliant on traffic north-and-south -- routes rife with low-cost competitors JetBlue, AirTran and Southwest. Boyd believes US Airways must concentrate on stitching together east-west routes, concentrating on synergies with America West -- and do it within a year or so. "They've got the management to do it, but I don't know if they have the time," he said. "But their unit costs are coming down, and their labor costs are more competitive with low-cost carriers," said Kasper. "And that's a huge change." As part of the carriers' merger plans, the two airlines expect to shed at least 5,000 jobs between them. Executives won't say how the reduction will break down between US Airways' 30,000 workers and America West's 14,000, only that they believe most of it will come through attrition. Then, it will take up to two years to integrate all work groups and labor contracts, said Parker. Merging seniority lists and choosing between different unions for similar work groups takes time and work, said Kasper. Plus, employees have to learn new computer systems for things like reservations and crew scheduling. "It won't be a perfectly smooth process," he said. But Parker may be as able as any airline exec to pull it off, say analysts. A young veteran of Northwest Airlines, Parker arrived at America West as chief financial officer in 1995 and quickly climbed to the top. At just age 39, he took over the chairman-CEO reins at America West one week before Sept. 11, 2001. Under Parker, the airline was the first to obtain a federal loan guarantee -- of $380 million -- after the terrorist attacks choked passenger traffic and revenue. "America West is swallowing a much bigger organization and will have to bring them over to America's West's way of doing things," said Kasper. "But Parker is a young guy; he's energetic and demonstrated the ability to turn around an airline. And he's had this vision of (a new US Airways) for quite a while." From usairways at vision.moundalexis.com Sun Sep 25 14:35:39 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 25 Sep 2005 10:35:39 -0400 (EDT) Subject: [US Airways] America West prepares for Tuesday merger with US Airways Message-ID: <20050925103213.D673-100000@vision.moundalexis.com> 25 September 2005 ; East Valley Tribune America West prepares for Tuesday merger with US Airways http://www.eastvalleytribune.com/index.php?sty=48930 --- By John Yantis, Tribune Paul Hotchkiss remembers it all. There was the young-buck airline that was out to prove itself with a single break room filled with excited pilots, flight attendants, rampers and mechanics. They liked each other so much many of them married. There was the time they finally flew east of the Mississippi, a sure sign the upstart was a industry player. There was the mistake of growing too fast and flying to exotic places like Nagoya, Japan and Hawaii. It turned the airline into a part-time pineapple shipper. There were the dark days of bankruptcy when workers saw their profit-sharing plans fall harder than a plane in turbulence. The arch-rival, Southwest Airlines, looked good, and some were willing to cross the street. There were the maintenance problems, scheduling snafus that left hundreds stranded and the headlines of drunk pilots and losing an 11-year-old girl traveling alone. And now there is a name change after 22 years, a merger with US Airways -- a company three times bigger -- and more uncertainty. A one-time baggage handler turned senior manager, Hotchkiss said America West Airlines is a survivor. "There's a lot of us that are still around after 22 years," he says. "We carried this airline as far as we could, doing everything we can to keep it alive as possible." But higher fuel prices and industry overcapacity have led to a merger with US Airways that begins Tuesday. "If we did not think about merging ... who knows where we'd be six months from now," Hotchkiss said. The story of America West is one of hits and misses. It competed successfully against the industry's best, Southwest, and at the same time made some bone-headed decisions that left employees angry and, in one case, marching down Mill Avenue. All along, the hometown airline had difficulty figuring out what it wanted to be. It gave the Valley unprecedented prestige and became one of the largest local employers. But it was always a struggle. "To date, the story has been a very complicated, difficult existence," said Michael Roach, one of the airline's cofounders. "The first managers, my former colleagues, ended up virtually destroying the company, and it went bankrupt. Bill Franke and his colleagues in Phoenix got rid of them, brought in new money, brought the airline out of bankruptcy and managed to stabilize it ... at great cost in employee morale. They were not very popular, and they failed to clearly establish a market niche for America West." Bob Mann, an airline consultant at New York-based R.W. Mann and Co., said the merger will propel the airline onto the national stage, something America West has tried to do throughout its history, including in the 1980s when it showed interest in some of Pan American World Airway's domestic operations. "This time it looks like they've got the whole enchilada here," Mann said, lauding the airline for being the only carrier after the terrorist attacks of Sept. 11, 2001, to use government-guaranteed loans wisely to overhaul its operations. "You'd have to say the record is certainly no worse than average, and, in the sense that it seems to be now dressed for success, it may turn out to be a whole lot better," Mann said. "Time will tell. There are the usual disclaimers, but you look at other people out there and it just looks like it's a downward drift almost everywhere, and it's really sad." Hotchkiss is one of four America West managers in the Phoenix command center inside Phoenix Sky Harbor International Airport's tower. The team is responsible for overseeing the entire America West operation from safety and security to monitoring arrivals and departures. Like most employees, he will miss the name. But he likes the company's idea to include the America West logo and the logos of three other airlines that went into the making of US Airways on the side of the aircraft. Hotchkiss is also fond of the plan to paint at least one of the new company's aircraft in America West's orange and turquoise "Jurassic" scheme. "As far as the name going away, it's kind of sad," he said. "I've still got my stuff at home, my memorabilia from way back when. My wife is a 21-year employee. She's a flight attendant, and she still has some of the ramp uniforms from back in 1983. . . I've got drawers full of all kinds paraphernalia from the old days, from when I used to be a ramper to a supervisor on the flight line." In the early days of the airline, employees did it all. Flight attendants could fly one day and drive a bag tug and sling luggage between planes the next. Pilots would work dispatch. Customer service agents would work as flight attendants or on the ramp. "The camaraderie was extremely high to where there were no departmental fences or barriers," Hotchkiss said. "Everybody knew everybody." There was one break room for everybody in the company. There were three gates, three planes at first and free cocktails and newspapers for the passengers. On a Web site called Cactus Wings run by a group of aviation enthusiasts, the "Unofficial History of America West" includes information from an employee who remembered washing the aircraft with a garden hose. The company's maintenance center was called the Blue Sky Hangar because all of its planes were parked outside, and in-flight training was done in a room with folding chairs set up like an airplane interior, the site says. Tickets could be purchased on board. "Unfortunately, as the company grew, we all started to become separated, and then as we started flying large aircraft we become a lot more technical," Hotchkiss said. "We tried to meet the needs of multiple different types of customers, anywhere from coach class to the elite class and everything in between." In 1990, America West moved from Terminal 3 into the new Terminal 4 at Phoenix Sky Harbor International Airport, giving the carrier its own identity, an automated complex and centralized airport communications. The company was trying to keep up with the majors. It grew, took on larger and larger planes and began flying to the East Coast. Then it unveiled a jumbo Boeing 747 with plans to begin flying over water to Hawaii and Japan. The carrier tried unsuccessfully to receive approval to fly to Sydney, Australia and Tokyo. "When we had our first 747 parking here in Phoenix, I mean everybody in town was literally coming out to watch this operation happen," Hotchkiss remembered. The euphoria didn't last long. "The management of America West made many, many mistakes, including departing from the Southwest model," Roach said, adding the company's five aircraft types and route structure led to piling on huge amounts of debt. The overseas routes didn't carry enough passengers, so America West began shipping pineapples, Hotchkiss said. Del Monte had trouble shipping fruit to Los Angeles, so America West began flying it from Hawaii to Phoenix. >From there, it was trucked to Southern California. "I'm talking semi-loads every single day," Hotchkiss said. "They wanted to jump with the big boys too fast. Following a downturn in travel during the Persian Gulf War, America West filed for Chapter 11 bankruptcy reorganization in June 1991. With the company's future in doubt, It was especially tough for the married couples who worked at the airline. "There were hundreds and hundreds and hundreds of people like that, flight attendants marrying pilots and flight attendants marrying mechanics and people on the ramp marrying each other," Hotchkiss said. "I mean it was pretty bad. It got to the point, honestly, every day that (when) we came to work we didn't know if the doors were going to be locked or not, or if we did go to work, if we were actually going to fly that day, or if we were all going to go home. It was pretty traumatic for months on end." Before being hired, employees had to agree to buy America West stock as part of a profit-sharing plan, and "of course the stock went right down to nothing, and everybody started losing everything they could possibly have, plus their 401(k)," Hotchkiss said. Chief Executive and cofounder Ed Beauvais was out, and Franke, a turnaround specialist, assumed the the airline's reigns as chairman. At a recent farewell party for America West, Beauvais was reluctant to talk about the past. "I guess I'm kind of like President Bush," he said when asked if he would have done anything differently. "I don't want to admit my mistakes." Under Franke, America West emerged from Chapter 11 in 1994 with new owners and new resolve. The free drinks were eliminated during the trip through court, and jobs began to be outsourced. When executives decided to contract heavy maintenance work, 500 furloughed mechanics and their supporters marched to America West's headquarters and demanded Franke come out. He didn't. "In fairness, Bill saw the turn in the market that required fundamental change," Mann said. "If change is unsettling, then fundamental change is like, whoa. I think that did cause a lot of people some heartburn and especially for those folks who felt staying close the employee necessary to keep the company moving along. Bill really kind of just distanced himself from most of the line people." Franke turned things around, but the damage was done. To this day, Hotchkiss says Franke's name still comes up, and not in a positive context. "His philosophy was if you don't like it, get the hell out now," he said. "He just could not communicate openly in the open forums the corporation would have quarterly." Franke could not be reached for comment. By 1998, the airline was reporting record profits and winning awards. That summer maintenance problems began, and in June a record $5 million fine was imposed by the Federal Aviation Administration. In early 2000, the airline's automated dispatch system went down, leading to nearly 300 flight cancellations in three days. America West became "America Worst" in the eyes of its customers. Profits fell too. Doug Parker was promoted from executive vice president to president in May 2000. His job was to fix the airline. By the summer of 2001 things were looking up on the operations side, and Parker was promoted to chairman and CEO on Sept. 1. Then New York's Twin Towers fell. "It was just like a dead zone," Hotchkiss said. "Everybody was just in awe ... as the day progressed. The flight schedule was cancelled and all the aircraft came out of the sky. For the next 3 1 /2 or 4 days, we had no operations at all. When push came to shove and they released all the aircraft and decided the skies were safe, America West was the first airline in the sky within the continental United States. There was a lot of pride with that. There was a lot of pride because once again we stood ready, and we were prepared for what came at us." America West was first in line for a federally-backed loan given following the terrorist attacks. It was on the verge of bankruptcy when the loan came through in January 2002. Since then, Parker has run things ship-shape. He's generally popular with employees, although union leaders grumble that flight attendants and mechanics need new contracts. America West rolled out a simpler fare structure and concentrated on being a low-cost airline. Passenger complaints are down, and ontime arrivals are more common. The airline has managed to keep its head above water despite fuel costs that continue to soar. But its problems are deeper, Roach said. "At the end of Franke period, people said 'Why do we need America West?' " he said. "What unique thing to do they bring to the marketplace that requires their continued existence. It's easy to give the reasons for the existence of Southwest, given that they were all over us in Phoenix and Las Vegas. Why do we need America West? Franke never really answered that question." Still, Roach gives Franke credit for saving the airline, although he left it too much like the established legacy carriers that now are in deep financial trouble. "The world didn't need another legacy carrier, which is what it is telling us right now in Chapter 11 filings. It didn't need another one then. America West was both a lowcost carrier, but not as low as Southwest, and a legacy carrier, but not as good at that as American. It was in a not very comfortable no-mans land." Roach says Parker will have his hands full transforming a regional airline into a much larger one that offers trans-Atlantic flights. "In the time he's had, he still hasn't proved to the world that the world needs an America West," he said. "His take on it was America West needed to get much bigger, get national in scope, that the industry needed to consolidate ... and he decided to do that by acquiring US Airways." How they've grown America West Airlines began in the Valley 22 years ago with three airplanes. On Tuesday it becomes US Airways 1983: America West 3 planes 5 destinations 20 daily departures 2005: US Airways 760 planes 230 destinations 3,994 daily departures From usairways at vision.moundalexis.com Mon Sep 26 12:36:25 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 26 Sep 2005 08:36:25 -0400 (EDT) Subject: [US Airways] How US Airways defied the odds Message-ID: <20050926083520.X673-100000@vision.moundalexis.com> 25 September 2005 ; The Charlotte Observer How US Airways defied the odds http://www.charlotte.com/mld/charlotte/living/travel/12736599.htm --- TONY MECIA Staff Writer Visiting family in New Jersey, Bruce Lakefield spent much of his Christmas weekend on the phone. His fragile airline, US Airways, was confronting a public relations nightmare. It was canceling flights by the hundreds, stranding thousands of passengers. Workers were calling in sick. The airline lacked the staff to replace them. Lakefield was worried. "Everybody was of course scared about what the next shoe to drop would be," he recalls. Then an interesting thing happened. He and other executives started receiving e-mails from employees who wanted to help. Volunteers sorted missing bags. Others served coffee and snacks to waylaid passengers. It wasn't pretty, but the company had survived yet another jam. To the airline's top leaders, US Airways' Christmas debacle was perhaps the most dramatic example of how it defied the odds. In crisis after crisis, they say, the company and its employees made precisely the right decisions at the most desperate moments to avoid total collapse. In the past week, five high-ranking current and former US Airways executives spoke with the Observer about the airline's tumultuous path in the last year and a half. Though they rarely grant interviews, they say they now feel free to talk, because a bankruptcy judge has approved their plan to leave bankruptcy court. The airline's merger with America West is scheduled to close Tuesday. They say they inherited a deeply flawed airline and quickly went to work to fix it. Along the way, competition grew tougher, and oil prices climbed higher, making their task more difficult. At times, some privately doubted the airline would survive. They acknowledge taking painful steps to end pensions, slash wages and eliminate thousands of jobs. Yet they say those were the only decisions they could make if they wanted to preserve the airline. "We came into an airline that had major, major problems in an industry that's dysfunctional," Lakefield says. "We found a solution that saves tens of thousands of jobs." One of the most daunting challenges was squeezing more money from the airline's employees. By late 2003, it was becoming clear to the company's leaders that the cutbacks they made in the airline's first bankruptcy case just a year earlier were insufficient. In one meeting, then-CEO Dave Siegel and the company's chief financial officer told senior management they needed to draw up a new plan to save the airline. At that, all heads turned to Jerry Glass, the airline's senior vice president who oversaw relations with the airline's unions. As the airline's biggest expense, labor was an obvious target, though not an easy one. Glass, a self-described liberal Democrat from New York with a hardball reputation, would have to return, hat in hand, to labor unions that had already given up plenty in two prior rounds of concessions. Though some employees thought Glass relished the chance to clash again with the airline's unions, he says he didn't welcome the task. "If you think there's enjoyment out of that, you need your head examined," he says. Talks dragged. To kick start them, the airline's board forced out Siegel as a peace offering, replacing him with Lakefield. Still, the company struggled to convince its unions of the impending crisis. Glass says he was brutally honest with the unions, giving them access to internal financial reports that showed the company wasn't exaggerating its need for cuts. Yet the pilots' union, the focus of most of the airline's initial negotiating effort, was deeply divided over tactics. It had installed a new negotiating team just as talks began. The second bankruptcy filing allowed the airline to postpone or reduce some payments. It also helped accelerate labor talks, because the company could invoke bankruptcy powers to force wage cuts if necessary. Talks with the pilots started moving, but the airline's three other major unions fought back in court, arguing that the proposed cuts were unnecessary and excessive. At one point, Glass recalls heading home after work and telling his wife, "We're not going to make it." There seemed like too much to do in too little time: get the unions on board, keep enough cash to continue operating -- and then somehow find an investor. "I just didn't think we were going to get there," he says. Yet in the end, under the threat of court-mandated cuts, all four labor groups agreed to new contracts that called for wage cuts, new work rules and the elimination of thousands of jobs. Later, a judge agreed to eliminate pension plans. Bill Pollock, leader of US Airways' pilots' union, credits management with sharing internal information, which he says allowed the union to make better decisions. "The pilots respect the truth, as brutal as it may be," he says. Asked if he had any regrets, Glass shook his head, no. Then he clarified: "I regret everything that had to be done, but it had to be done." Hope from a dark moment In a pile on his desk at US Airways' headquarters, Chris Chiames kept a page clipped from a public-relations trade magazine. It listed 10 signs the company you work for is in crisis. On it were things like "mass layoffs or plant closings," "unplanned change in company leadership" and "significant court/legal action."In more than two years at US Airways, Chiames, the company's senior vice president for corporate affairs, figured the airline had hit all 10. Some of the worst publicity came over Christmas, when staffing problems led the airline to cancel more than 400 flights. National TV news showed lost bags piling up. Angry passengers vented to newspapers and threatened never to fly the airline again. "It was so penalizing to the airline," says Ben Baldanza, a senior vice president who left in January. "We couldn't have the veneer of `this isn't affecting out customers' any more." But other leaders couldn't understand why problems with about 15 percent of their flights, principally out of Philadelphia, was receiving top billing in the news over the other major Christmas weekend story, the tsunami that killed more than 100,000 people. Executives initially blamed the problems on workers for calling in sick. Later, a Transportation Department report blamed management for failing to plan for large numbers of sick calls. To US Airways' executives, though, the big story coming out of Christmas was not the stranded passengers and the missing bags. It was the response from employees, who volunteered at airports to deliver bags and help travelers. A few of the top leaders turned out, too. Pilot Bob Vendley of Davidson recalls seeing Chiames, wearing casual slacks and a jacket, helping push bags on rollers. Sweat poured down his face, Vendley says. "That was a great vote of confidence by the people in this company," Lakefield says. "It gave us every reason we could to find a solution and change the way we operated." Competitors try to strike In January 2005, US Airways faced yet another dilemma: How would it find the cash to survive? Yes, it had made deep cuts. But given its track record and financial projections, it still looked like a poor investment. Other airlines were sniffing around but seemed interested only in pieces of US Airways' carcass, such as its coveted takeoff and landing slots at congested airports. Chiames says he received word one day through "back channels" that JetBlue CEO David Neeleman was headed to Washington and wanted to meet with Lakefield to discuss buying assets. The company refused the meeting, Chiames says. A year earlier, the company had rejected an overture from Virgin Atlantic to buy takeoff and landing slots and gates at East Coast airports. Executives had also met with counterparts at United to discuss a merger -- rekindling flames from the failed merger of the two in 2001-- but those talks failed to bear fruit. The airline turned to John Luth, CEO of the Seabury Group, which specializes in raising money for airlines. "The wisdom out there was it couldn't be done," Luth said in an interview this summer. Yet he and the executives devised a strategy to tap regional airlines for money. Those airlines depend on major carriers to survive, and US Airways wanted them to pay to operate as US Airways Express. The company landed two such deals. At the same time, Luth encouraged Lakefield to revive previous talks about a merger with America West. Within weeks, executives of the two airlines were meeting, in hotel meeting rooms near US Airways' headquarters that Chiames had found. The airline didn't want to be seen talking with America West CEO Doug Parker and others, for fear of sparking speculation. In May, after a busy day of discussions, Parker, Lakefield and other executives headed to US Airways' skybox to take in a Washington Wizards NBA playoff game. Dressed in suits, they drank beers as the player introductions began. Just then, Luth received an e-mail on his BlackBerry, confirming the final piece of the investment needed, a $75 million pledge from Air Canada. Struggling against the crowd noise and booming player introductions, Luth waved the BlackBerry and shouted the good news. The men shook hands and congratulated each other. The companies announced the deal the following week. Doing the unexpected Looking back on the ups and downs, Lakefield and the others say the company came close to extinction."I think we skirted around the edge through most of the process," Lakefield says. "You didn't need a big deviation for things to have gone terribly wrong." He and many others worked hard, he says. He doesn't like talking about the sacrifices he's made, or how the experience has changed him. Some labor leaders, though, don't view the company leaders through such a soft filter. "All they did was cut our labor contracts and lower the costs," says Mike Flores, leader of the airline's flight attendants' union. "I don't think it took geniuses to do that." Unions have protested that executives didn't share in their sacrifices, pointing out that Lakefield never cut his $425,000 salary. A judge also approved severance payments for the top leaders of up to twice their salaries. Lakefield's share is $1.7 million. Lakefield says he dealt with the criticism and stress of the job by running on a treadmill, or by playing tennis. He'd keep his eye on the ball and hit it, hard. "When you've got everybody refusing to quit and refusing to die," he says, "sometimes you can do the unexpected." Tony Mecia: (704) 358-5069; tmecia at charlotteobserver.com Back From the Brink When it filed for bankruptcy protection a year ago, US Airways faced long odds of surviving. Statistically, companies that file for bankruptcy a second time are far more likely to die than those heading in for the first time, says Lynn LoPucki, a bankruptcy professor at the University of California at Los Angeles. A bankruptcy relapse creates low worker morale, tarnishes a company's brand name and reputation and makes vendors wary of doing business, he says. US Airways filed for bankruptcy the first time in 2002 but emerged just eight months later, in March 2003. Executives say they probably would have stayed in longer that first time to make additional changes but that a credit-card processor pressured them to leave bankruptcy court. Even airline industry experts were surprised that under CEO Bruce Lakefield, US Airways has been able to improve its prospects and deliver a merger with America West. The deal is scheduled to close Tuesday. Lakefield, a retired banker, had little airline expertise. "He really did recover and deliver a great sales pitch on a combined entity," says industry consultant Robert Mann. Now, attention will turn to other airlines battling through bankruptcy. Delta Air Lines and Northwest Airlines filed for court protection this month, joining United Airlines, which has been in bankruptcy protection for three years. With labor talks stalled, US Airways leaders say they couldn't avoid a second bankruptcy filing. "Without it, we'd be out of business," says Executive Vice President Jerry Glass. CEO Bruce Lakefield (above) spoke outside of court in Alexandria, Va. A holiday meltdown of canceled flights and mounting luggage was a fiasco, to be sure. Some senior managers doubted it was the death knell some made it out to be. America West boss Doug Parker (right) pressed US Airways chief Lakefield for details on cost cutting in February. The more Parker learned, the more he believed a merger made sense. The two announced the deal in May. From usairways at vision.moundalexis.com Mon Sep 26 12:37:04 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 26 Sep 2005 08:37:04 -0400 (EDT) Subject: [US Airways] America West and US Airways to merge miles Message-ID: <20050926083626.W673-100000@vision.moundalexis.com> 26 September 2005 ; The Wise Marketer America West and US Airways to merge miles http://www.thewisemarketer.com/briefs/archive.asp?action=read&bid=1325 --- America West's FlightFund frequent flyer programme members can now earn airline miles for booking a cruise through the airline (cruise bookings are made thanks to a partnership with multi-channel leisure travel agent NLG). America West and US Airways frequent flyers will all benefit from the new America West Cruises relationship, through which FlightFund frequent flyer programme members and US Airways Dividend Miles members will have miles earned on cruise bookings combined into a single Dividend Miles account (by spring 2006). Members earn 1,500 miles for a 1-5 night cruise, 3,000 miles for a 6-8 night cruise, 5,000 miles for a 9-12 night cruise, or 10,000 for 13 nights or more. From usairways at vision.moundalexis.com Mon Sep 26 13:19:29 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 26 Sep 2005 09:19:29 -0400 (EDT) Subject: [US Airways] US Airways Announces Travel Tips for Merger With America West Message-ID: <20050926091731.V673-100000@vision.moundalexis.com> 26 September 2005 ; PR Newswire US Airways Announces Travel Tips for Merger With America West http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-26-2005/0004131485 --- PHOENIX, Sept. 26 /PRNewswire-FirstCall/ -- US Airways Group, Inc. today announced the following tips to make travel smooth for customers in the days immediately following the merger between America West (NYSE: AWA) and US Airways (OTC Bulletin Board: UAIRQ). * Customers should continue to book directly with US Airways or America West as they did before the merger. The airlines' web sites, http://www.americawest.com and http://www.usairways.com, will operate separately in the short term, as will the two airlines' reservations systems. * Customers should check their e-ticket or paper ticket, which will indicate which airline operates their flight. Check in with that airline, even if you are flying from an airport served by both America West and US Airways. Airport signage will be in place to direct customers. * For e-tickets, customers can make changes online at the web site from which they bought the tickets. They can also call the airline's reservations center (call the airline listed as the operating carrier on the ticket). * Miles from both programs earned both before and after the merger will be honored. For those customers with a membership in both programs, unused miles will be automatically combined in early 2006 under the new Dividend Miles program. * Members will be able to accrue and redeem miles under either program. To redeem miles, Dividend Miles members must do so through US Airways, FlightFund members through America West. * Members will be able redeem mileage across either network beginning in October, and all frequent flyer features will be consolidated under one program early next year. * In the short term, customers who desire to check-in online should use the Web site of the airline from which they purchased their ticket. * Customers should continue to use the self-service kiosks that match the airline from which they purchased tickets. Customers can expect additional updates as later phases of the merger, including code-sharing, are implemented. US Airways and America West have joined together to create the fifth largest domestic airline employing nearly 38,000 aviation professionals. US Airways, US Airways Shuttle and the US Airways Express operate approximately 4,000 flights per day and serve more than 225 communities in the U.S., Canada, Europe, the Caribbean and Latin America. This press release and additional information on US Airways can be accessed at http://www.usairways.com or http://www.americawest.com. US Airways is a member of the Star Alliance, which was established in 1997 as the first truly global airline alliance to offer customers global reach and a smooth travel experience. The other members are Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, bmi, LOT Polish Airlines, Lufthansa, Scandinavian Airlines, Singapore Airlines, Spanair, TAP Portugal, Thai Airways International, United and VARIG Brazilian Airlines. South African Airways and SWISS will be integrated during the course of the next 12 months. Overall, the member carriers offer more than 15,000 daily flights to 795 destinations in 139 countries. From usairways at vision.moundalexis.com Tue Sep 27 12:21:10 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 08:21:10 -0400 (EDT) Subject: [US Airways] New US Airways prepares for takeoff Message-ID: <20050927082009.B673-100000@vision.moundalexis.com> 26 September 2005 ; Business First of Buffalo New US Airways prepares for takeoff http://buffalo.bizjournals.com/buffalo/stories/2005/09/26/daily8.html --- The merger between America West Airlines and US Airways closes Tuesday, and the America West name will taxi its way off the active runway and into the history books. The combined carrier will be based in Tempe, Ariz., yet carry the US Airways name. It will be a bittersweet moment for employees who survived a Chapter 11 bankruptcy filing in 1991, and the Sept. 11 terrorist attacks. In fact, the first commercial flight to take off after Sept. 11 was an America West flight. America West (NYSE: AWA) launched its first flight 22 years ago, with three planes. The new US Airways begins service with a fleet of 600 planes. It maintains the largest share of any carrier servicing Buffalo Niagara International Airport. The new US Airways sign goes into place Tuesday on the airline's Tempe headquarters building and America West Arena's name is due to change, perhaps as early as the first full week in October. Sources tell the Phoenix Business Journal that the venue will carry the US Airways name, but it will not be called US Airways Arena. The airlines Monday offered the following travel tips for passengers to follow immediately following the merger: Customers should continue to book directly with US Airways or America West as they did before the merger. The airlines' Web sites will operate separately in the short term, as will the two carrier's reservations systems. Customers should check their e-ticket or paper ticket, which will indicate which airline operates their flight. Check in with that airline, even if you are flying from an airport served by both America West and US Airways. Airport signage will be in place to direct customers. Miles from both programs earned both before and after the merger will be honored. For those customers with a membership in both programs, unused miles will be automatically combined in early 2006 under the new Dividend Miles program. Additional frequent flyer details are expected to be released Tuesday. Customers should continue to use the self-service kiosks that match the airline from which they purchased tickets. Starting Tuesday, the combined airline will trade on the New York Stock Exchange under the symbol LCC. Chief Executive Doug Parker will ring the opening bell of the NYSE in celebration. The new US Airways will be the fifth largest domestic airline, employing nearly 38,000 people. US Airways, US Airways Shuttle and the 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 Tue Sep 27 12:23:20 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 08:23:20 -0400 (EDT) Subject: [US Airways] From ticker to tail, US Airways reborn Message-ID: <20050927082110.C673-100000@vision.moundalexis.com> 26 September 2005 ; Market Watch >From ticker to tail, US Airways reborn http://www.marketwatch.com/news/story.asp?guid=%7B6931FE3B-76B1-4030-9221-96FC71661A8C%7D --- By August Cole, MarketWatch SAN FRANCISCO (MarketWatch) -- When US Airways Group shares start trading on Tuesday as "LCC" on the New York Stock Exchange, the combined US Airways and America West will make its Wall Street debut. The choice of the stock ticker is a nod toward the company's ambition to become a low-cost carrier, industry parlance for the few airlines that can make money in a low-airfare and high-fuel-price environment. See full story. The merger is expected to officially close at 12:01 a.m. Tuesday morning after a 10-day period following the bankruptcy court's clearance of a Chapter 11 exit. See full story. Quote: 'They're [being] given a new lease on life, and they've got to make the most use of it.' -- Ray Neidl, Calyon Securities After the two companies inked a deal May 19 deal, the two airlines set out to remake US Airways as the dominant name in the deal, though America West executives will steer the company from their Arizona offices. US Airways, twice bankrupt since the Sept. 11, 2001, terrorist attacks, has been able to cut expenses and debt while under Chapter 11 protection. America West was already operating as a low-cost airline. "They were able to reduce their cost structure in bankruptcy ... and by doing the merger with AWA they were able to attract outside equity capital as well," said Ray Neidl, an airline analyst with Calyon Securities. Listen to the interview with Neidl. "It means they're given a new lease on life, and they've got to make the most use of it." The new airline will have some 38,000 workers and be the No. 5 domestic carrier, according to the company. The company is already drawing on different outside equity investors such as ACE Aviation Holdings, Par Investment Partners, Peninsula Investment Partners, Wellington Management Co. and Tudor Proprietary Trading and Eastshore Aviation, which have invested $565 million; they will receive about 36.5 million shares, or 46% of shares outstanding. America West (AWA: news, chart, profile) shareholders have voted to approve the deal. Quote: 'Execute, execute, execute. You can't say it enough.' -- Elise Eberwein, US Airways Operationally, there is still work to be done even if investors have already lined up. Planes from both US Airways and America West are being repainted. At hub airports in Philadelphia, Pittsburgh, Charlotte, Las Vegas and Phoenix, attention will be focused on the little details like parking that still are being worked out. "Execute, execute, execute. You can't say it enough," said company spokeswoman Elise Eberwein. Cultural integration is a big issue, too, she noted. There are different groups of organized workers that have to be blended together. Thinning out the fleet of planes is one thing; deciding who flies what planes, when and how is another. Blending the operations of both companies will take two to three years, the company has said. "There's so many different layers to this thing," said Eberwein. Customers shouldn't expect any dramatic changes right away at the airline, travel experts said. See full story. In the wider airline industry, it is a tumultuous time. Record jet-fuel prices at the end of the summer are ratcheting up the financial pressure on all carriers, even low-cost operators. Meanwhile, Delta Air Lines (DAL: news, chart, profile) and Northwest Airlines (NWACQ: news, chart, profile) are currently restructuring under bankruptcy protection. From usairways at vision.moundalexis.com Tue Sep 27 12:24:22 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 08:24:22 -0400 (EDT) Subject: [US Airways] US Airways, America West spend last day apart Message-ID: <20050927082330.C673-100000@vision.moundalexis.com> 26 September 2005 ; Philadelphia Business Journal US Airways, America West spend last day apart http://philadelphia.bizjournals.com/philadelphia/stories/2005/09/26/daily7.html --- The merger between US Airways and America West Airlines closes Tuesday. The combined carrier will be based in Tempe, Ariz., home of America Wes, yet carry the US Airways name. US Airways (OTCBB: UAIRQ), which recently exited bankruptcy and is the dominant carrier at Philadelphia International Airport, is based in Arlington, Va. Starting Tuesday, the combined airline will trade on the New York Stock Exchange under the symbol LCC. The new US Airways begins service with a fleet of 600 planes. The airlines Monday offered the following travel tips for passengers to follow immediately following the merger: * Customers should continue to book directly with US Airways or America West (NYSE: AWA) as they did before the merger. The airlines' Web sites will operate separately in the short term, as will the two carriers' reservations systems. * Customers should check their e-ticket or paper ticket, which will indicate which airline operates their flight. Check in with that airline, even if you are flying from an airport served by both America West and US Airways. Airport signage will be in place to direct customers. * Miles from both programs earned both before and after the merger will be honored. For those customers with a membership in both programs, unused miles will be automatically combined in early 2006 under the new Dividend Miles program. Additional frequent-flyer details are expected to be released Tuesday. * Customers should continue to use the self-service kiosks that match the airline from which they purchased tickets. The new US Airways will be the fifth-largest domestic airline, employing nearly 38,000 people. US Airways, US Airways Shuttle and the 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. In other US Airways news, the Philadelphia Inquirer reported Monday that, in a recorded message last week to employees, US Airways Chief Executive Bruce R. Lakefield said that US Airways' exit from bankruptcy was not a sure thing. "There were times when we felt that we would not be able to stay in business for more than a few weeks," he told employees, according to the Inquirer. From usairways at vision.moundalexis.com Tue Sep 27 12:25:43 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 08:25:43 -0400 (EDT) Subject: [US Airways] Merging the miles Message-ID: <20050927082424.B673-100000@vision.moundalexis.com> 26 September 2005 ; Market Watch Merging the miles http://www.marketwatch.com/news/story.asp?guid=%7B42BBC19C-1883-45AD-9DB4-08A0352984D7%7D --- US Airways merger means frequent-flier tweaks for some By Andrea Coombes, MarketWatch SAN FRANCISCO (MarketWatch) -- US Airways fliers will likely enjoy a smooth transition in coming months as the airline emerges from bankruptcy and merges with America West. But America West passengers face some tweaks to their frequent-flier miles, and over the long haul the merger could mean fewer direct flights, some industry experts said. US Airways is expected to announce the completion of its merger with America West (AWA: news, chart, profile) on Tuesday. Investors will have a new ticker to consider, LCC. See full story. In the short term, most travelers will see little change, industry experts said. Listen to interview with Ray Neidl, airline analyst at Calyon Securities. "At first, the two airlines will basically operate in parallel universes, with creeping amounts of schedule coordination," said Henry Harteveldt, vice president of travel research at Forrester Research, via e-mail while on a business trip in Europe. Others agreed, with a caveat. "I don't think we're going to see much initially, but as things go on obviously they're going to want to net the two airlines together and start adjusting how they feed passengers to each other," said David Stempler, president of the Air Travelers Association, a member-supported advocacy group. Fewer direct flights? That merging could lead to fewer direct flights, Stempler said. Before, "with US Airways having its big hubs on the East Coast in Philadelphia and Charlotte, they could really only send non-stops to San Francisco, Los Angeles, San Diego ... because they had no intermediary hub on the West Coast," Stempler said. "Now, there is an alternative where they can consolidate passengers at one of America West's two hubs in Phoenix and Las Vegas. If those flights were running full before, they may not need to do that. But if not, this may be a way to gain some efficiency." But Harteveldt disagreed. "The two don't really compete at all, so I doubt there will be any noticeable cut-back," he said. "If anything, once the 'new' US Airways is in place ... travelers may feel they have more options than before," because America West has a strong presence in the West, as does US Airways in the East, plus offers trans-Atlantic service, he said. Still a Star? Still, Harteveldt said, that broader range of traveler options is based in part on US Airways remaining in -- and bringing America West into -- the Star Alliance, a network of about 15 carriers around the world, including US Airways, United Airlines, Lufthansa, Singapore Airlines and Air Canada. Some of those carriers, including US Airways and United, take part in "code sharing," where they share routes to make for seamless travel. They also generally enter into baggage agreements, offer shared use of airport clubs, and partner on their frequent flier programs. For instance, US Airways passengers can earn and redeem frequent flier miles on Star Alliance carriers. US Airways has hinted that it hopes to pull America West into the Star Alliance, but there are no guarantees, some say. "I am not 100% convinced that the 'new' US Airways will remain in Star Alliance, or participate in any alliance, for that matter," Harteveldt said. "America West may view alliances as expensive and unnecessary." Frequent-flier shift What exactly will happen to the airlines' routes and schedules is a guess at this point. "You won't see [route changes] until they get their feet and decide what their system is going to look like," said Ray Neidl, airline and aerospace analyst at Calyon Securities. But there's no doubt the frequent flier programs are going through some tweaks, though travelers should find most of those changes painless. Miles already earned on either carrier will be honored after the merger, US Airways and America West said. In early October, members of either company's frequent flier program should be able to earn and redeem miles on the other carrier's flights so, for instance, an America West passenger can use her miles to buy a US Airways flight. If there are any hitches, call airline reservations, said Carlo Bertolini, a spokesman with America West. If you're booking in early October, "you may not be able to claim some of the awards online, but someone either online or through reservations will be able to help you claim it throughout the network," he said. "A US Airways reservation will be able to accept a FlightFund number and vice versa." FlightFund is the name of America West's frequent flier program. Next year, both programs will be merged into one, with the same name as US Airways' current program, Dividend Miles Any unused miles in either program will be automatically combined into the new program in spring of 2006, according to a US Airways press release. Read about the two carriers' frequent flier programs. For more tips on how to approach travel on these two airlines in coming months, check out US Airways' "travel tips." Read the tips. Good-bye, BA Probably the biggest change travelers face imminently is the end of America West's code sharing and frequent-flier relationship with British Airways. By the end of October, British Airways will no longer share routes with America West, and America West's frequent-flier partnership with British Airways will end Dec. 31. Read the America West release on its frequent flier partnership with British Airways. Frequent fliers who wish to use their miles on British Airways flights need to book that trip by March 1, 2006, with travel to be completed by Jan. 31, 2007, said Bertolini, the America West spokesman. But America West passengers will now have access to Europe through US Airways (regardless of whether it's in the Star Alliance or not), Bertolini said. "Right away, through the merger, we'll have access to Europe," he said. From usairways at vision.moundalexis.com Tue Sep 27 12:27:14 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 08:27:14 -0400 (EDT) Subject: [US Airways] US Airways to halt in-flight oxygen option Message-ID: <20050927082550.J673-100000@vision.moundalexis.com> 26 September 2005 ; The Charlotte Observer US Airways to halt in-flight oxygen option http://www.charlotte.com/mld/charlotte/living/travel/12743072.htm --- TONY MECIA CONSUMER TRAVEL Flying to a funeral in San Francisco this month, Nancy Sulzer of Charlotte thought she had done everything right. Sulzer, 67, suffers from severe emphysema, so she says she made sure to order medical oxygen from US Airways for her flights. But when she arrived at the ticket counter in San Francisco for her return trip, gate agents told her they had no record of her oxygen order, and she had no confirmation number. Sulzer's doctor had told her she couldn't fly without the oxygen. And the gate agents said they couldn't get an oxygen device on a San Francisco-to-Charlotte flight for two more days. The only solution for Sulzer: navigate her wheelchair onto a series of shuttles in an unfamiliar city, and stay two days in a hotel, at her expense. "I went through such hell," she says. A US Airways spokesman said the company does not comment on individual cases but said that if the airline let her down, then it is deeply apologetic and will work to make sure the problem won't happen again. Now, though, changes are in the works on how the airline industry provides medical oxygen to passengers such as Sulzer, who need supplemental oxygen to compensate for thin air in airplane cabins. The way the changes play out will help determine whether and how the more than 1 million lung-disease sufferers travel. For Charlotte-area travelers, the most immediate change will come at the end of the month, when US Airways stops offering in-flight medical oxygen. Like most other old-line carriers, US Airways has traditionally provided the oxygen for $100 per flight segment. But now that it is becoming a low-cost airline in its merger with America West -- which does not offer oxygen -- the new airline sees no need to continue the service. Southwest Airlines and other discount carriers do not offer medical oxygen. At the same time, though, the development of new medical technologies is promising to make air travel more widely available to people with lung disease. This summer, the Federal Aviation Administration for the first time approved two brands of portable oxygen compressors aboard planes, although each airline can decide for itself to permit or refuse passengers from carrying on the items. The FAA estimated that the ruling will allow an additional 50,000 travelers to fly each year. The approved brands -- AirSep LifeStyle and Inogen One -- are about one-fourth the weight of older models. Most U.S. airlines, however, have not yet approved the use of the devices as they continue to test their effects on planes. Some international airlines already allow them. The Transportation Department this month proposed a rule requiring U.S. carriers to provide free medical oxygen, though a decision isn't expected until at least next year. A US Airways spokeswoman says she expects portable oxygen compressors to be allowed on the airline's flights beginning in November. Other airlines expect to allow them by the end of the year. Daryl Risinger, vice president of marketing with California-based Inogen, says the company receives calls every day from customers who are planning to attend family reunions and weddings and visit new grandchildren for the first time since being placed on oxygen. One even forwarded photos of himself and his Inogen oxygen compressor on an archaeological dig in the Middle East, he said. "Individuals requiring oxygen now have an opportunity to regain a great deal of freedom and control of their lives," Risinger said. The suggested retail price is $5,495, which Risinger said could be covered by insurance. Companies are even springing up to rent the devices. Jimmy Nelson, director of operations for Oxygen to Go of Jackson, Wyo., says he expects business to increase once airlines approve the portable compressors. Tips for Air Travel with Lung Disease * Call the airline. Many airlines have oxygen departments that schedule on-board oxygen. If you reserve oxygen, get a confirmation number. * See your doctor before you fly. * Airlines that have permitted or will soon permit portable oxygen compressors include Continental, American, United, US Airways, Air France, Lufthansa, Qantas, KLM and Northwest, says Jimmy Nelson of Oxygen to Go. From usairways at vision.moundalexis.com Tue Sep 27 12:28:02 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 08:28:02 -0400 (EDT) Subject: [US Airways] US Airways unveils new frequent flier program Message-ID: <20050927082715.R673-100000@vision.moundalexis.com> 26 September 2005 ; The Charlotte Observer US Airways unveils new frequent flier program http://www.charlotte.com/mld/charlotte/living/travel/12747149.htm --- TONY MECIA Staff Writer US Airways unveiled a new frequent flier program on Monday, one that increases the minimum number of miles for a reward ticket and adds a fourth tier for elite travelers. Much of the other features of the program will stay the same. The new program takes effect Oct. 5. The announcement comes as US Airways and America West are set to close on their merger deal Tuesday, resulting in a nationwide airline that offers flights to Hawaii, the Caribbean and Europe. Charlotte will remain the airline's largest hub. Highlights of the frequent-flier changes include: * Domestic tickets. Passengers may obtain a coach-class domestic ticket using 25,000 award miles. Currently, US Airways frequent travelers redeeming miles on the Internet can travel domestically starting at 20,000 miles, if traveling between Sept. 15 and the end of February. * International tickets. Similar changes take effect for reward tickets to the Caribbean and Europe. Tickets to Central America, Mexico or the Caribbean will start at 30,000 miles, and tickets to Europe will start at 50,000 miles. Currently, Caribbean tickets obtained from the Internet start at 25,000 miles (for travel between Sept. 7 and Nov. 14), and tickets to Europe start at 40,000 miles (for travel between Oct. 1 and April 30). * Added elite tier. The airline will add a fourth tier - "Platinum Preferred" - to its elite traveler programs, which offer quick check-in and free first-class upgrades. People who fly 75,000 miles a year will be Platinum Preferred - outranking Gold and Silver Preferred members for upgrades but lagging behind Chairman's Preferred members (100,000 miles). Qualifying for the lowest elite level, Silver Preferred, will remain at 25,000 miles flown per year. Even after the merger, customers can redeem miles using the same Web site or phone number they have always used. For more information, go to www.usairwaysinfo.com/usair/content/frequent-flyer/ From usairways at vision.moundalexis.com Tue Sep 27 12:28:48 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 08:28:48 -0400 (EDT) Subject: [US Airways] US Airways, America West merge Message-ID: <20050927082804.F673-100000@vision.moundalexis.com> 26 September 2005 ; Pacific Business News (Honolulu) US Airways, America West merge http://pacific.bizjournals.com/pacific/stories/2005/09/26/daily14.html --- Expansion to Hawaii is a key plan for US Airways and America West following their Tuesday merger into a single major carrier. The new airline keeps the US Airways name but puts America West leadership in charge and establishes the corporate headquarters in Tempe, Ariz., rather than in Arlington, Va., where US Airways has lately been based. The seventh and eighth largest U.S. airlines were two very different carriers before now. America West, only 22 years old, is a discount carrier with a route network predominantly in the West. It sells code-share tickets to Hawaii on Hawaiian Airlines but plans its own service to Hawaii this winter. America West competes heavily with Southwest Airlines, which now will be the biggest U.S. airline with no Hawaii service. America West has the distinction of having the very first commercial flight to take off after the lifting the flight ban of 9/11. US Airways, formerly USAir, was formed a generation ago by the merger of Allegheny and Piedmont, two airlines that made their living serving small and medium markets in the Northeast. In its trouble early years there was a joke that USAir stood for, "Unfortunately Still Allegheny in Reality." Today the airline has extensive service to Europe and the Caribbean but it has been through two wrenching bankruptcies, emerging from the second just in time for merger. Airline industry analysts have wondered in print whether a discount carrier like America West and a legacy carrier like US Airways can merge successfully, but America West executives reply that the two airlines have similar pay scales and largely non-overlapping route networks, both of which they consider more important than the pricing issue. From usairways at vision.moundalexis.com Tue Sep 27 12:30:10 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 08:30:10 -0400 (EDT) Subject: [US Airways] Newly merged US Airways pools strength Message-ID: <20050927082848.R673-100000@vision.moundalexis.com> 26 September 2005 ; USA Today Newly merged US Airways pools strength http://www.usatoday.com/money/biztravel/2005-09-26-airmerge-usat_x.htm --- By Dawn Gilbertson, Arizona Republic PHOENIX . The new US Airways, billed as the USA's first low-cost, full-service airline, is set to make its debut today under cloudy industry skies. With $1.5 billion in new cash from outsiders, the new airline combines Arlington, Va.-based US Airways with Tempe, Ariz.-based America West. The merged carrier becomes the USA's No. 5 airline. For now, travelers will continue to deal with the carriers as separate airlines. But, with approval from regulators, shareholders and bankruptcy court now behind, the two will begin integrating. The America West executives who crafted the merger and will run the airline have a tall order: get control of US Airways' unwieldy East Coast network, keep costs down and successfully combine two large workforces with their own agendas. At stake are nearly 40,000 jobs, frequent non-stop flights in Phoenix and other hub cities, shareholders' money and more. CEO Doug Parker acknowledges the heavy lifting has just begun. But he says the two airlines are stronger together than apart. The industry's woes are well documented: sky-high fuel prices, stiff competition and excess capacity. But the new US Airways will arrive with a few things on its side, including: * CASH. Money it raised from outsiders and existing reserves give the airline $2.5 billion. That provides staying power in a time of projected heavy losses. * LOW COSTS. America West has long operated with low costs relative to the distance it flies its customers. US Airways has arrived there, painfully for employees, during two trips through bankruptcy court. * RISING AIRFARES. America West has posted some of the best revenue gains in the industry thanks in part to reduced competition on the West Coast. America West executive Scott Kirby sees that spreading to the cutthroat East Coast with Delta operating in bankruptcy-court protection and Independence Air on bankruptcy watch. The biggest problems, says Michael Boyd, an aviation consultant in Evergreen, Colo., are too many flights in "obscenely" competitive markets, such as New York, too many flights at congested Philadelphia airport and huge growth plans in the region by low-cost carriers Southwest, JetBlue and AirTran. Southwest is widely believed to be eyeing Charlotte, US Airways' busiest city and what Boyd calls the linchpin of its system. America West executives haven't revealed their strategy beyond saying they see big financial benefits from route restructurings and flight rescheduling. They are key components of the $600 million in "synergies" they project from the merger. Translation: They want to put the planes where they will make money. The combined airline is also shrinking. US Airways already has returned or is in the process of returning 51 planes from its fleet. From usairways at vision.moundalexis.com Tue Sep 27 12:31:37 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 08:31:37 -0400 (EDT) Subject: [US Airways] New US Airways Enters A Period of Adjustment Message-ID: <20050927083017.E673-100000@vision.moundalexis.com> 27 September 2005 ; The Washington Post New US Airways Enters A Period of Adjustment http://www.washingtonpost.com/wp-dyn/content/article/2005/09/26/AR2005092601763.html --- Business Class Keith L. Alexander, Columnist By Keith L. Alexander Tuesday, September 27, 2005; Page D01 In a sweat, John W. Sutton dashed up to what he thought was the US Airways ticket counter yesterday at Washington's Reagan National Airport. A makeshift canvas sign behind the agent read: US Airways and America West. The two carriers, which announced plans to merge in May, begin operating as a merged carrier today. [Photo] Caption: Newly merged US Airways and America West begin dovetailing their operations today, their first day as one airline called US Airways. (By William Thomas Cain -- Getty Images) Sort of. Sutton, who was flying US Airways to Atlanta, had actually shown up at the America West counter. But the agent there could not process him for a US Airways flight. So Sutton was sent down to the other end of the concourse to the US Airways ticket counter. He had only 30 minutes until his departure. "This is really confusing right now," said Sutton, a Lexington Park consultant with BearingPoint. Executives from the combined airline, which will be called US Airways, admit some kinks will occur as the carriers gradually put their operations together. They advised passengers to check in at the airline -- America West or US Airways -- that sold them their ticket. The two airlines will operate separately for about two years as the rebranding and merging of the operations slowly takes place. It will be several months before each airline will be able to process the other's passengers. Starting Oct. 5, passengers will have to earn more frequent flier miles to nab a free trip. Frequent fliers will need 25,000 miles for a free trip on the combined airline, compared with 15,000 miles on America West and 20,000 miles on US Airways. Passengers will be able to earn and redeem miles on both carriers. H. Travis Christ, vice president of sales and marketing for America West, who is overseeing the combined airline's frequent flier program, said raising the threshold will expand the number of free seats available on each flight. Some US Airways frequent fliers said they weren't surprised by the increase, since 25,000 frequent flier miles was the minimum number of points required at several other carriers, including Northwest and Continental airlines. Alexandria economist Charles Witt said the increase was a "trade-off" for more destinations that would come from the merger. The airline will also hand out fewer bonus miles for tickets purchased online. US Airways customers who purchase tickets on its Web site will now earn only 500 bonus miles, compared with 1,000 miles currently offered. Also beginning on Oct. 5, travelers seeking to reach elite status will be able to start counting their trips on America West and US Airways toward that goal in 2006. The airline will no longer require passengers traveling on free awards to stay over a Saturday night. Both airlines' frequent flier programs will remain separate through the spring. At that time, the new airline will eliminate America West's Flight Fund program while keeping US Airways' Dividend Miles frequent flier program. Meanwhile, executives in Tempe, Ariz., where America West is based and the new US Airways will have its headquarters, were busy preparing for the change. The large green America West Airlines sign that has crowned its headquarters since the carrier's inception in 1983 was taken down and replaced by a big blue-lettered US Airways sign. W. Douglas Parker, America West's president and chief executive, plans to be on the floor of the New York Stock Exchange today to mark the start of trading in the combined airline's stock under the symbol LCC. Parker will serve as the new US Airways president and chief executive. Some America West frequent fliers said they are concerned that the merger would negatively affect their favorite airline's operations. "America West has one of the better work cultures and I know US Airways has been struggling. I hope America West doesn't suffer for this," said Sira Maliphol of Arlington. BWI Under a New Name: Baltimore-Washington International Airport will assume its new name on Saturday, becoming Baltimore-Washington International Thurgood Marshall Airport. New signs honoring the late Supreme Court associate justice and Baltimore native will begin going up around the airport today. The airport code, used for airline schedules, will continue to be BWI. The airport is also planning to erect a memorial to Marshall by the end of the first quarter. From usairways at vision.moundalexis.com Tue Sep 27 12:32:35 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 08:32:35 -0400 (EDT) Subject: [US Airways] Alabama's ties to US Airways come to a close Message-ID: <20050927083140.A673-100000@vision.moundalexis.com> 27 September 2005 ; The Birmingham News Alabama's ties to US Airways come to a close http://www.al.com/business/birminghamnews/index.ssf?/base/business/112781290997800.xml&coll=2 --- MICHAEL TOMBERLIN News staff writer David Bronner's tenure as chairman of US Airways Group ends today when the airline is expected to emerge from Chapter 11 bankruptcy, costing Alabama's pension fund $240 million. The head of the Retirement Systems of Alabama pumped that sum into the troubled airline company in March 2003, betting it was ripe for a comeback after slipping into bankruptcy after the 9/11 terrorist attacks. RSA got a 36 percent stake for its investment, which has since been written off. Still, Bronner on Monday said he has no regrets about the move and remains hopeful it will pay some dividends to the state. The loss doesn't pose a threat to the pension fund, which has about $25 billion in assets. "Basically, we got killed because when they came out of the first bankruptcy when we were involved they probably should have stayed in a little longer," Bronner said. "They came out and then the oil hit them and that was that." Bronner said the decision by Airbus sister company EADS North America to build a $600 million plant in Mobile if it wins an Air Force tanker contract is a direct result of contacts made via US Airways relationships. The project could bring more than 1,100 jobs to Mobile. Talks are under way to bring other major projects to Birmingham and Huntsville through US Airways connections, Bronner said. He declined to give particulars. "What I was after was an opportunity to build the airline industry for the state of Alabama," Bronner said. That didn't stop when US Airways tumbled back into bankruptcy. "We're working on a couple of other things and have been working on them ever since we wrote the investment off a year and a half ago," he added. "We could have walked away then." Turbulence predicted: Bronner said RSA still holds leases on a couple of US Airways planes and has a small piece in an Air Transportation Stabilization Board loan to the airline, but other than that, there is no additional investment left in US Airways. RSA represents nearly 300,000 current and retired teachers and state government workers. Bronner predicted turbulent times for the industry when US Air took its second decent into bankruptcy in September 2004. "I told you over a year ago that I anticipated some of the other majors if you lined us up - in an analogy given to me by an old assistant secretary of treasury for the United States - we happened to be the first marshmallow on the stick," Bronner said. "That meant clearly so that Delta, Northwest and the others were right behind. You will probably see more activity in the middle of this next month when the bankruptcy laws change. I would anticipate more casualties in between." Still, Bronner said the airline industry won't stay grounded long. "I think the industry is still absolutely essential to the rest of the world," he said. "It's not like a horse whip or a horse and buggy facing the invention of the automobile. Airline jet service is absolutely essential to the economy and to the world. There are still a lot of opportunities there, the problem is it's an industry which is going through extremely difficult times and much of its is unmanageable." Airlines not off-limits: Bronner said he is not ready to channel RSA investments into airlines today, but he wouldn't rule it out in the months or years ahead. "The key is when you take your gains and you take your losses: Are you ahead or are you behind? When we wrote (US Airways) off, we made $3 billion that year," he said. "A 1 percent gamble, you take those every day. Some of them you don't have any control over, like the Dow or interest rates, which will cost you a lot more than this one." From usairways at vision.moundalexis.com Tue Sep 27 22:42:33 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 18:42:33 -0400 (EDT) Subject: [US Airways] US Airways-America West Merger Official Message-ID: <20050927184140.O673-100000@vision.moundalexis.com> 27 September 2005 ; The Pittsburgh Channel US Airways-America West Merger Official http://www.thepittsburghchannel.com/news/5022412/detail.html --- US Airways and America West Airlines officially combined Tuesday, forming the nation's fifth-largest domestic carrier. The two airlines will function separately for about two years while the company rebrands itself as US Airways and merges its operations. Executives admit things could be a bit bumpy at first. Call 4 Action reporter Meghan Jones has more information in the following report, which first aired Sept. 26, 2005, on WTAE Channel 4 Action News at 5:30 p.m. US Airways and America West officially become one airline Tuesday. So, what does that mean for customers? Reservations? Frequent flyer miles? Both airlines are trying to make the transition as painless as possible for customers. Here's what one needs to know when planning travel with either airline from now into next year. US Airways officials said they want to make the merger transition as painless as possible for passengers. Their reservations systems will not merge, at least in the short term. To book a flight with US Airways or America West, go to each of their separate Web sites: www.americawest.com and www.usairways.com Once the reservation is made, check the ticket to see which airline is actually operating that flight. Passengers should check in with the airline on the ticket, even if both airlines service the airport. So, what about frequent flyer miles? Should travelers hurry to try and use them? According to the companies, miles from both programs earned before and after the merger will be honored. For travelers who have miles in both programs, those miles will be automatically combined in early 2006 under a new dividend miles program. Beginning in October, members will be able redeem mileage across either network. Airports where both airlines do business are supposed to have signs to point you in the right direction for baggage and ticket check-in. From usairways at vision.moundalexis.com Tue Sep 27 22:43:23 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 18:43:23 -0400 (EDT) Subject: [US Airways] Combined US Airways-America West takes flight Message-ID: <20050927184233.U673-100000@vision.moundalexis.com> 27 September 2005 ; Baltimore Business Journal Combined US Airways-America West takes flight http://baltimore.bizjournals.com/baltimore/stories/2005/09/26/daily12.html --- The new US Airways, the combination of US Airways Group Inc. and America West Airlines, took flight Tuesday as the nation's fifth-largest domestic airline. The combined carrier will be based in Tempe, Ariz., America West's base, but carry the US Airways name. Its stock is trading on the New York Stock Exchange under the symbol "LCC." US Airways stock opened Tuesday at $21.05 per share and was trading by mid-afternoon at $20.51. "Today we start a new chapter in aviation history," said CEO Doug Parker, who rang the opening bell at the stock exchange in celebration Tuesday. "The new US Airways combines our airlines' proud heritage with our employees' passionate commitment to provide our customers with friendly service and low fares. This is a great day for the employees of America West and US Airways as well as for the people in the hundreds of communities we serve." Both serve Baltimore/Washington International Airport. Ranked by number of passengers served in 2004, US Airways was the sixth largest at the airport and America West was the ninth largest. As of Aug. 12, US Airways offered 13 daily nonstop fights from BWI to destinations of: Charlotte and Greensboro, N.C; LaGuardia in New York; Philadelphia; Pittsburgh; Syracuse, N.Y.; and Richmond, Va. America West offered five nonstop daily flights to Phoenix, Ariz., and Las Vegas. While the merged airline will operate under the US Airways name, America West and US Airways will maintain separate operating certificates for about two to three years. Once Federal Aviation Administration approvals have been granted, the two airlines' operating certificates will be combined. The new US Airways will employ nearly 38,000 people. US Airways, US Airways Shuttle and the 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. "We are confident that the enthusiasm and professionalism of our employees, combined with the experienced leadership team we have selected to run the new airline will give us greater financial stability and competitive strength in the marketplace," Parker said. The airlines offered the following travel tips for passengers to follow immediately following the merger: Customers should continue to book directly with US Airways or America West as they did before the merger. The airlines' Web sites will operate separately in the short term, as will the two carrier's reservations systems. Customers should check their e-ticket or paper ticket, which will indicate which airline operates their flight. Check in with that airline, even if you are flying from an airport served by both America West and US Airways. Airport signage will be in place to direct customers. From usairways at vision.moundalexis.com Tue Sep 27 22:44:24 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 18:44:24 -0400 (EDT) Subject: [US Airways] America West, US Airways Finalize Union Message-ID: <20050927184324.E673-100000@vision.moundalexis.com> 27 September 2005 ; The Washington Post America West, US Airways Finalize Union http://www.washingtonpost.com/wp-dyn/content/article/2005/09/27/AR2005092700927.html --- The Associated Press Tuesday, September 27, 2005; 5:09 PM TEMPE, Ariz. -- America West and US Airways finalized their union Tuesday, combining to form the nation's fifth-largest domestic carrier. "Today we start a new chapter in aviation history," Doug Parker, chief executive of the newly combined company, said in a news release. Although the airlines can now operate as one carrier, they said passengers should continue to book directly with each airline as they did before the deal closed. The airlines are still operating separate Web sites and still have two reservation systems. Flight crews, maintenance and safety procedures for each airline will also remain separate for some time. The goal of the deal was to form a stronger airline that would compete better with lower-cost rivals such as Southwest Airlines Inc. and JetBlue Airways Corp. Arlington, Va.-based US Airways has a strong presence on the East Coast and in the Caribbean. America West, based in Tempe, operates across the West from hubs in Phoenix and Las Vegas. Even though America West is considered the financially stronger company, the US Airways name will survive. US Airways received final approval on Sept. 16 to exit bankruptcy protection for the second time in three years, paving the way for it to be purchased by America West. The deal will be funded by $1.5 billion in new capital from a variety of investors, including the European aircraft maker Airbus. The new US Airways Group Inc. began trading Tuesday on the New York Stock Exchange. The company's shares closed at $19.30. From usairways at vision.moundalexis.com Tue Sep 27 22:45:27 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 18:45:27 -0400 (EDT) Subject: [US Airways] Air Canada parent ACE Aviation fulfils investment in US Airways-America West Message-ID: <20050927184424.U673-100000@vision.moundalexis.com> 27 September 2005 ; Canada.com Business Centre (CP) Air Canada parent ACE Aviation fulfils investment in US Airways-America West http://www.canada.com/businesscentre/story.html?id=fe8172e9-a93f-414c-8506-a81c6598aff8 --- Canadian Press MONTREAL (CP) - ACE Aviation Holdings Inc., the parent company of Air Canada, said Tuesday it has completed its planned $75-million-US investment in the new US Airways and progress has been made on co-operation agreements between the two companies. US Airways is emerging from bankruptcy proceedings as a new entity. ACE's investment in the firm amounts to $87 million Cdn and represents about seven per cent of the new equity in the firm. ACE chief executive Robert Milton will serve as a director of US Airways Group Inc. as the two companies begin working together. "This is an important transaction with great strategic significance for ACE and we look forward to working with (US Airways CEO) Doug Parker's management team going forward," Milton said, noting that the new US Airways is now the fifth-largest carrier in the United States. ACE said "significant progress" has been made on finalizing agreements to outsource maintenance, repair and overhaul work to Air Canada Technical Services (ACTS). Some work has already been assigned to Air Canada's technical team for the maintenance of US Airways' Airbus A330 fleet. "As US Airways moves forward post emergence, we expect to see an acceleration of, and increasing growth in, the work that ACTS does for the new carrier," said William Zoeller, chief executive of ACTS. "At this stage final contracts have not been completed, but ACTS expects the commercial relationship to be a significant and profitable segment of its business going forward." Midday Tuesday, shares in ACE (TSX:ACE.B) - which itself is the product of bankruptcy protection proceedings - gained 16 cents to trade at $36.46 on the Toronto Stock Exchange. From usairways at vision.moundalexis.com Tue Sep 27 22:46:12 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 18:46:12 -0400 (EDT) Subject: [US Airways] US Airways clears bankruptcy Message-ID: <20050927184528.P673-100000@vision.moundalexis.com> 27 September 2005 ; Monsters & Critics US Airways clears bankruptcy http://news.monstersandcritics.com/business/article_1050941.php/US_Airways_clears_bankruptcy --- PHOENIX, AZ, United States (UPI) -- A reconstituted US Airways emerged from bankruptcy Tuesday, billing itself as the first low-cost, full-service airline in the United States. With $1.5 billion in new cash from outsiders, the new airline combines Arlington, Va.-based US Airways with Tempe, Ariz.-based America West to form the nation`s fifth-largest carrier. America West executives, who are running the airline, must keep costs down, find ways to make the old East Coast flight schedules of US Airways more efficient and integrate two workforces, analysts say. The biggest problems, says Michael Boyd, an aviation consultant in Evergreen, Colo., are too many flights in 'obscenely' competitive markets like New York, too many flights at congested Philadelphia airport and huge growth plans in the region by low-cost carriers Southwest, JetBlue and AirTran. All of these challenges must be met quickly and amid high jet fuel costs. From usairways at vision.moundalexis.com Tue Sep 27 22:48:17 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 18:48:17 -0400 (EDT) Subject: [US Airways] It's US Airways Redux, As AWA Merger Is Done Message-ID: <20050927184710.P673-100000@vision.moundalexis.com> 27 September 2005 ; Forbes It's US Airways Redux, As AWA Merger Is Done http://www.forbes.com/business/commerce/2005/09/27/usairways-awa-merger-cx_gl_0927autofacescan04.html --- Faces In The News NEW YORK - US Airways is dead. Long live US Airways. The twice-bankrupt carrier was reborn Tuesday as its merger with America West Holdings' eponymous airline was completed. The combination, led by Chairman, President and Chief Executive Douglas Parker--who comes from the AWA side of the marriage--will create the No. 5 commercial air travel firm in the U.S. However, in its press release, the newborn US Airways (nyse: LCC) touted itself as America's "largest full-service, low-cost, low-fare airline." One assumes by that statement that the firm has indeed made itself in the image of discounters like Southwest Airlines (nyse: LUV) and JetBlue (nasdaq: JBLU)--fructifying the dream of US Airways' pre-merger CEO, Bruce Lakefield. As the firm cements its business, it will continue to operate and sell tickets as two separate entities for the short term. "Today we start a new chapter in aviation history," Parker declared in the statement. Wielding a cornucopia of adjectives, the CEO continued, "The new US Airways combines our airlines' proud heritage with our employees' passionate commitment to provide our customers with friendly service and low fares. This is a great day for the employees of America West and US Airways as well as for the people in the hundreds of communities we serve." Will the market agree? The newly minted hybrid carrier began trading Tuesday on the New York Stock Exchange under the ticker, LCC. It opened at $21.05, trading at $20.55 by Tuesday midafternoon. But then, look at its two previous incarnations: On Monday, AWA ended at $8.70; bankrupt US Airways closed at 16 cents. It's a start. From usairways at vision.moundalexis.com Tue Sep 27 22:49:18 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 18:49:18 -0400 (EDT) Subject: [US Airways] US Airways celebrating Message-ID: <20050927184818.J673-100000@vision.moundalexis.com> 27 September 2005 ; Richmond Times-Dispatch US Airways celebrating http://www.timesdispatch.com/servlet/Satellite?pagename=RTD/MGArticle/RTD_BasicArticle&c=MGArticle&cid=1031785304967 --- With images of Fred Astaire and Ginger Rogers posted behind them, Richmond-based employees of US Airways staged a cinematically themed celebration today of their merger with America West and the carrier's emergence from bankruptcy protection. Click here. "Hey, you want to go dancing?" a US Airways pilot called out to ticket agent Donna Peele, who was dressed like Marilyn Monroe in a gold-sequined dress. There was no dancing, but plenty of enthusiasm as US Airways employees looked forward to a new day for the revamped airline. "Considering all that US Airways has been through, the employees really needed a boost in morale," Richmond station manager Sam Burton said. From usairways at vision.moundalexis.com Tue Sep 27 22:50:10 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 18:50:10 -0400 (EDT) Subject: [US Airways] US Airways, America West complete merger Message-ID: <20050927184919.W673-100000@vision.moundalexis.com> 27 September 2005 ; The Washington Post US Airways, America West complete merger http://www.washingtonpost.com/wp-dyn/content/article/2005/09/27/AR2005092700591.html --- Reuters Tuesday, September 27, 2005; 1:55 PM WASHINGTON (Reuters) - US Airways Group Inc. and America West Airlines closed their merger on Tuesday, creating a company that plans to mix low-cost efficiency with the reach and service of a bigger carrier. "Today we start a new chapter in aviation history," said Douglas Parker, the America West chief executive who will lead the fifth-biggest domestic carrier by volume. The new airline has numerous hurdles to overcome, including a poor industry record for mergers, continued high fuel prices, and the challenge of combining thousands of unionized pilots, flight attendants and mechanics into one work force over the next two years. The airline will employ nearly 40,000 people. The deal worth more than $1.5 billion lifts old US Airways out of bankruptcy after a year-long restructuring. It also tests the leadership and vision of Parker, a rising industry star whose decision last spring to embrace a failing and much bigger US Airways was questioned by many industry insiders. The carrier launches service during one of the industry's most tumultuous moments with three other major U.S. airlines operating in bankruptcy protection. Looking over Parker's shoulder are a handful of private investors who chipped in $565 million and will control the company. America West shareholders and the government agency holding $1 billion in loan guarantees for both companies also have measurable stakes in the merged entity. US Airways begins trading on the New York Stock Exchange under the ticker symbol LCC. The airlines are continuing to operate separate reservations systems and Web sites for the short term. Travel miles from both programs earned both before and after the merger will be honored. From usairways at vision.moundalexis.com Tue Sep 27 23:53:45 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 27 Sep 2005 19:53:45 -0400 (EDT) Subject: [US Airways] US Airways Faces Execution, Integration Challenges Message-ID: <20050927195328.X673-100000@vision.moundalexis.com> 27 September 2005 ; Forbes US Airways Faces Execution, Integration Challenges http://www.forbes.com/markets/emergingmarkets/2005/09/27/us-airways-merger-acquisition-0927markets16.html --- Market Scan By David Ng Standard & Poor's Equity Research reiterated a "hold" opinion on U.S. Airways Group, saying several challenges remain for the newly merged company. America West (nyse: AWA) completed its acquisition of U.S. Airways today, with the new entity adopting the name U.S. Airways Group. S&P Equity Research said it favorably views the merger in terms of U.S. Airways' geographic presence and the likelihood that it will have lower unit costs than most peers. However, "we think several execution and integration challenges remain, including workforce, network and other issues," the research firm said. S&P Equity Research maintained a $22 target price on U.S. Airways, based on an intrinsic value calculation. From usairways at vision.moundalexis.com Wed Sep 28 12:57:14 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 28 Sep 2005 08:57:14 -0400 (EDT) Subject: [US Airways] US Airways, America West merge, fight costs Message-ID: <20050928085622.A673-100000@vision.moundalexis.com> 28 September 2005 ; The Detroit News US Airways, America West merge, fight costs http://www.detnews.com/2005/business/0509/28/C04-330306.htm --- Airlines said passengers should continue to book with each airline as they did before the deal closed. By Cary O'Reilly and Mary Schlangenstein / Bloomberg News America West and US Airways finalized their union Tuesday, combining to form the nation's fifth-largest domestic carrier. "Today we start a new chapter in aviation history," Doug Parker, CEO of the newly combined company. Although the airlines can now operate as one carrier, they said passengers should continue to book directly with each airline as they did before the deal closed. US Airways, the seventh-biggest in the United States, will spend two years combining with Tempe, Arizona-based America West, an effort it says will help it compete with rivals such as Southwest Airlines Co. W. Douglas Parker, who ran America West, is now US Airways' chief executive, the company said Tuesday. Parker plans to merge operations slowly to minimize staff changes and avoid disrupting service. The airline is leaving court protection at a time when jet fuel has risen 43 percent in 12 months and low-fare rivals are expanding. At the same time, Delta Air Lines Inc. and Northwest Airlines Corp., the Nos. 3 and 4 U.S. carriers, are now in their second week of bankruptcy, which means they don't have the burden of paying creditors. US Airways is "facing the same problem everybody else is," said Ray Neidl, a Calyon Securities USA Inc. analyst in New York. US Airways managers "have done a commendable job in cutting non-fuel costs, but they still have a major challenge ahead of them in reducing other costs and making a profit." The largest U.S. airlines have lost $38.2 billion since 2000. UAL Corp's United Airlines, the second-biggest U.S. carrier, has been in bankruptcy protection since 2002. US Airways filed for Chapter 11 in 2002 and emerged from court protection in 2003. It filed for bankruptcy a second time in September 2004. The company, which slashed more than $1 billion in operating costs since filing its latest bankruptcy just over a year ago, projects $600 million a year in savings from putting its operations together with America West's. The combined airline plans to operate under the US Airways name. The Associated Press contributed to this report. From usairways at vision.moundalexis.com Wed Sep 28 12:58:21 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 28 Sep 2005 08:58:21 -0400 (EDT) Subject: [US Airways] US Airways chief gives a surprising farewell Message-ID: <20050928085722.G673-100000@vision.moundalexis.com> 26 September 2005 ; Philly.com US Airways chief gives a surprising farewell http://www.philly.com/mld/philly/12741791.htm --- US Airways' chief executive Bruce R. Lakefield, who turns over the reins of the airline tomorrow to America West Airlines CEO Doug Parker when the carriers merge, delivered his final weekly message to employees last week - complete with a surprising acknowledgment of how close US Airways came to liquidation. Lakefield spent most of the two-minute recorded message expressing thanks to employees for their hard work and sacrifice that helped keep the company alive. He said he wished that conditions in the airline business enabled US Airways to pay more, but that "industry conditions are worse than ever before." Then came words more explicit than anything US Airways said during its yearlong stay under Bankruptcy Court protection: "There were times when we felt that we would not be able to stay in business for more than a few weeks. "But we did," Lakefield added. "And what we have now is far more than we could have hoped for."- Tom Belden From usairways at vision.moundalexis.com Wed Sep 28 13:00:32 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 28 Sep 2005 09:00:32 -0400 (EDT) Subject: [US Airways] Oops: CNBC pre-empts US Airways exec Message-ID: <20050928085822.D673-100000@vision.moundalexis.com> 28 September 2005 ; The Arizona Republic Oops: CNBC pre-empts US Airways exec http://www.azcentral.com/arizonarepublic/business/articles/0928buzz-bizbuzz28.html --- US Airways CEO Doug Parker rang the opening bell at the New York Stock Exchange on Tuesday, but most people who got up before 6:30 a.m. to catch the merger moment missed it. As the clock ticked down to the market opening on business news network CNBC, the only thing that viewers saw was anchor Mark Haines as he read a lengthy clarification on a story that ran the previous night. By the time he switched his attention to the opening bell ceremony, it was over. "Somewhere in there is Doug Parker," Haines said before realizing they missed the opening. Eagle-eyed viewers did get a glimpse of Parker's head and a quick shot of Executive Vice President Scott Kirby a few minutes later on the exchange floor. Parker and company got their 15 minutes of NYSE fame live on Bloomberg Television, but it is not widely available in the Valley. [...] From usairways at vision.moundalexis.com Wed Sep 28 13:01:31 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 28 Sep 2005 09:01:31 -0400 (EDT) Subject: [US Airways] US Airways Stock Drops on First Day Message-ID: <20050928090033.R673-100000@vision.moundalexis.com> 28 September 2005 ; The Washington Post US Airways Stock Drops on First Day http://www.washingtonpost.com/wp-dyn/content/article/2005/09/27/AR2005092701862.html --- Merger, Fuel Costs Worry Investors By Keith L. Alexander Washington Post Staff Writer Wednesday, September 28, 2005; Page D04 The new US Airways Group Inc. made its debut yesterday on the New York Stock Exchange, plunging more than 8 percent as investors fretted over whether the carrier's merger with America West Holdings Corp. could create a low-cost airline to compete in a tough market. "Now that the marriage has taken place, the honeymoon ends quickly. Now comes the hard part in making this airline work," said analyst Ray Neidl of Calyon Securities Inc. "If they pull this off successfully, then the value will go up. If they don't, the value will decline." Investors drove down US Airways shares by 8.3 percent, or $1.75, to close at $19.30. The airline's shares trade under the symbol LCC, for low-cost carrier. Their decline yesterday mirrored losses in the broader airline sector which is under pressure from high fuel costs. The merger was completed yesterday after the carriers worked for four months to convince shareholders, employees and government officials that the union would be beneficial to both airlines. After a year in Chapter 11 bankruptcy protection, US Airways officially emerged from court protection, having restructured primarily to prepare for the merger. Doug Parker, former president and chief executive of America West and now head of the new US Airways, called the merged airline a "new chapter in aviation history." The combined airline becomes the nation's fifth largest carrier and the nation's biggest full service, low-cost, low-fare airline, the airline's executives said. Merging the two airlines' operations will proceed gradually. Each will continue to operate separately for about two to three years. They will maintain separate Web sites and reservation systems for several months. Wall Street analysts said obtaining approval from government and bankruptcy court regulators was the easiest part of the merger. The difficult part lies ahead as the new carrier seeks to be profitable in a troubled industry. Standard & Poor's yesterday gave US Airways a corporate credit rating of B-minus with a watch-negative designation. "The combined entity will face significant hurdles, particularly integration of its labor forces," wrote Standard & Poor's credit analyst Betsy Snyder. The new US Airways will be based in Tempe, Ariz., the headquarters of America West. During the next several months, the airline will be shutting down the former US Airways corporate offices in Crystal City. The 600 employees who worked there will have to move to Tempe or find employment elsewhere. Friday will be the last day for many of the senior executives of the former US Airways. From usairways at vision.moundalexis.com Wed Sep 28 23:00:48 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 28 Sep 2005 19:00:48 -0400 (EDT) Subject: [US Airways] American Stock Exchange to Trade Options on US Airways Group Incorporated Message-ID: <20050928190010.J673-100000@vision.moundalexis.com> 28 September 2005 ; PR Newswire American Stock Exchange to Trade Options on US Airways Group Incorporated http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-28-2005/0004134167 --- NEW YORK, Sept. 28 /PRNewswire/ -- The American Stock Exchange(R) (Amex(R)) will launch trading in options on Thursday, September 29, 2005 on the New York Stock Exchange listed stock of US Airways Group, Inc. (Symbol: LCC) US Airways Group, Inc. options will open with strike prices of 17 1/2 -- 20-22 1/2 and position limits of 2,500,000 shares. The options will trade on the March expiration cycle with initial expirations in October, November, December and March. The specialist will be Group One Trading, LP. US Airways Group, Inc. is an air carrier that transports passengers, property and mail. The Company provides regularly scheduled service at airports in the United States, Canada, Europe, the Caribbean and Latin America. For more information on any Amex-listed company, please visit http://www.amex.com. From usairways at vision.moundalexis.com Thu Sep 29 12:29:40 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 29 Sep 2005 08:29:40 -0400 (EDT) Subject: [US Airways] America West, US Airways finish merger but operate alone Message-ID: <20050929082905.S673-100000@vision.moundalexis.com> 28 September 2005 ; The News Tribune (AP) America West, US Airways finish merger but operate alone http://www.thenewstribune.com/business/story/5212692p-4736787c.html --- America West and US Airways completed their union Tuesday, combining to form the nation.s fifth-largest domestic carrier. Although the airlines can now operate as one carrier, they said passengers should continue to book directly with each airline as they did before the deal closed. The airlines are still operating separate Web sites and still have two reservation systems. Flight crews, maintenance and safety procedures for each airline also will remain separate for some time. The goal of the deal was to form a stronger airline that would compete better with lower-cost rivals such as Southwest Airlines Inc. and JetBlue Airways Corp. From usairways at vision.moundalexis.com Fri Sep 30 02:39:29 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 29 Sep 2005 22:39:29 -0400 (EDT) Subject: [US Airways] You owe us $1 million, Moon tells US Airways Message-ID: <20050929223832.S673-100000@vision.moundalexis.com> 29 September 2005 ; Beaver County Times & Allegheny Times You owe us $1 million, Moon tells US Airways http://www.timesonline.com/site/news.cfm?newsid=15297456&BRD=2305&PAG=461&dept_id=478569&rfi=6 --- MOON TWP. - A federal bankruptcy court's approval of US Airways' reorganization plan could mean good financial news for the Moon Area School District. "We're hoping it's a positive effect," said John Cambest, district solicitor. Cambest said the district is one of several creditors owed money by the airline and school officials are conferring with a bankruptcy expert. For approximately 15 years, US Airways used the former Carnot Elementary School on University Boulevard, primarily for training flight attendants, and the former McCormick Elementary on Beaver Grade Road, primarily for training pilots. Last year, the airline notified the district in the fall that it would move from Carnot at the end of October 2004 and McCormick at the end of November 2004. School board President Mark Scappe said district officials are seeking $1 million to cover damage at both buildings, which includes holes in the walls left when flight simulators were removed. As part of the lease terms, the airline was required to make repairs and return the schools to their original configurations. The buildings had been remodeled with garage-door entrances and room-size changes to accommodate flight simulators and an airplane fuselage, for example, and the McCormick school's multipurpose-room stage is missing, said Al Bennett, director of fiscal and school services/transportation. "They didn't hold up their end of the agreement," he said. "They were supposed to return the buildings to some semblance of their original condition." Bennett said the district had its architect review the buildings to assess the damages and set the cost of restoring the schools. "Any allowed amount of their claim would be paid as a general unsecured claim as per the normal bankruptcy proceedings," said Amy Kudwa, spokeswoman for the airline. The building rentals brought the district about $500,000 a year, Bennett said. Carnot was leased for $23,333 a month and McCormick for $22,620 monthly. That arrangement ended Jan. 31, according to a bankruptcy filing that canceled eight leases across the US Airways system. Bennett said that when the airline went into its first bankruptcy, it defaulted on $18,000 in lease payments, but continued to lease the buildings and make payments. "They were really quite good about paying," he said. Neither building has been used as a school for several years, Bennett said. District officials have discussed renovating McCormick and utilizing it again. Carnot, however, is to be demolished as part of the high school building project. From usairways at vision.moundalexis.com Fri Sep 30 02:41:35 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 29 Sep 2005 22:41:35 -0400 (EDT) Subject: [US Airways] US Airways? Too Flighty. Message-ID: <20050929223929.K673-100000@vision.moundalexis.com> 29 September 2005 ; The Motley Fool US Airways? Too Flighty. http://www.fool.com/News/mft/2005/mft05092910.htm --- By Tim Beyers (TMF Mile High) US Airways (NYSE: LCC), the oft-beleaguered carrier, has emerged from bankruptcy, trimmer and supposedly stronger after a merger with America West and a year in bankruptcy. I've my doubts that any real good can come of this, but apparently many of you don't share my concern. The stock, which now trades under the all-too-cute symbol LCC -- for "low-cost carrier" -- saw its shares rise more than 6% by yesterday's close. Cash your reality check Who are you people? Are you the same ones who bid up Delta (NYSE: DAL) 40% when it filed for bankruptcy protection? If so, good luck. But if you're not, and yet you find yourself oddly intrigued and contemplating a purchase, I'd like to point you to the top four reasons not to buy, as recounted by US Airways. Yes, you read that right. These come straight from the airline's S-1 filing, beginning on page 16 with "Risks Related to Our Business": 1. Fuel costs are high. "Continued periods of historically high fuel costs, significant disruptions in the supply of aircraft fuel, or significant further increases in fuel costs could have a significant negative impact on our operating results." There are three factors to look at here. First, oil is, as of this writing, priced at around $67 per barrel. Second, no fewer than three times in the S-1 does the company say that its financial position may prevent it from obtaining futures contracts to hedge against the rising price of fuel. And, third, still-bankrupt United says that it needs oil to average around $50 per barrel over the next five years to meet its targets. It's probably a good bet that US Airways management is hoping for the same or better in its recovery plan. 2. Unwarranted optimism. "We may not perform as well financially as we expect following the merger." The fiscal health of the new US Airways is completely dependent on being able to realize $600 million of what it calls "synergies." Reduced fleet size is expected to contribute $175 million. Reduced administrative overhead -- that is, facility closures and IT infrastructure cuts -- is expected to contribute $200 million more. And the $225 million that remains? Where will that come from? Your guess is as good as anyone's. And don't be quick to say it will come from labor. The new airline has already squeezed its employees tight enough to get blood from a stone. And unions would likely resist anyway, having already filed objections to the new business plan. (Though, to be fair, those complaints were aimed at executive severance pay.) 3. The merger will be hard. "The integration of US Airways Group and America West Holdings following the merger will present significant challenges." It sure will. Most mergers fail, after all. This ditty at the end of page 16 offers a good illustration of why: "The integration of US Airways Group and America West Holdings will be costly, complex, and time-consuming, and the managements of US Airways Group and America West Holdings will have to devote substantial effort to such integration that could otherwise be spent on operational matters or other strategic opportunities." 4. Losses are still huge. "US Airways Group continues to experience significant operating losses." The document goes on to say that losses will probably continue through at least 2006. To sum up, in other words, what US Airways is saying: We're not yet sure we'll make money, but we'll figure it out. Trust us. Uh-huh. Suuuuuurrrrrrre, you will. The Siren song of bankruptcy -- don't buy it Hey, I know it's easy to fall in love with companies exiting bankruptcy. They're supposedly leaner and meaner. US Airways certainly fits the former description in that it has trimmed its net debt (which includes lease obligations) to $1.6 billion on operating revenues of just about the same amount, according to the S-1. But that's nothing compared with Southwest (NYSE: LUV), which has more than $200 million in net cash as of its most recent quarter on revenues of $6.5 billion, according to Yahoo! Finance. Maybe that's an unfair comparison. But US Airways did restructure itself with the intention of better competing with Southwest and Motley Fool Stock Advisor pick JetBlue (Nasdaq: JBLU). Factor in United's Ted, Delta's Song, and innumerable regional carriers, and you can't help concluding that the low-cost bin is already too full. And that's why I can't get very excited about US Airways' plan. You probably shouldn't, either. Don't fly away yet! We have related Foolishness for you: * Why not celebrate bankruptcy? The airlines sure are. * Is JetBlue really worth the price? Do tell. * US Airways has to break out of its holding pattern. Tired of investing in speculative stocks? Do you go to the mall and shop only in the bargain aisles? Do garage sales actually appeal to you? If so, Motley Fool Inside Value was made for you. Learn how Philip Durell and our Foolish band of value investing analysts buy stocks on sale by taking a risk-free trial today. Your portfolio will thank you. Fool contributor Tim Beyers didn't own shares in any of the companies mentioned in this story at the time of publication but he has family members who are retired from United Airlines. You can find out what's in his portfolio by checking Tim's Fool profile, which is here. The Motley Fool has an ironclad disclosure policy. From usairways at vision.moundalexis.com Fri Sep 30 02:42:18 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 29 Sep 2005 22:42:18 -0400 (EDT) Subject: [US Airways] US Airways hit hard by pre-merger fuel, labor costs Message-ID: <20050929224136.X673-100000@vision.moundalexis.com> 29 September 2005 ; The Business Journal of Phoenix US Airways hit hard by pre-merger fuel, labor costs http://phoenix.bizjournals.com/phoenix/stories/2005/09/26/daily46.html --- US Airways Group Inc. paid $158.3 million for fuel in August, posting a net loss of $14.1 million for the next to last month of its bankruptcy, according to a federal filing. The results were prior to the closing of the merger with America West Airlines, which concluded this past Tuesday. In a filing with the U.S. Securities and Exchange Commission, US Airways reported operating revenues of $633.7 million and expenses of $628 million for August. Fuel was the single largest expense at $158.3 million, followed by labor at $131.7 million. While operating under Chapter 11 bankruptcy protection, the old US Airways had no ability to hedge its fuel costs, forcing the carrier to pay recent record fuel prices. US Airways (NYSE: LCC) is now a Tempe-based low-cost carrier, servicing more than 200 destinations in the United States, Caribbean and Europe. From usairways at vision.moundalexis.com Fri Sep 30 12:36:51 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 30 Sep 2005 08:36:51 -0400 (EDT) Subject: [US Airways] Primer on America West and US Airways merger Message-ID: <20050930083610.W673-100000@vision.moundalexis.com> 30 September 2005 ; The Seattle Times Primer on America West and US Airways merger http://seattletimes.nwsource.com/html/travel/2002527173_usairways02.html --- By Dawn Gilberston The Arizona Republic America West and US Airways merged last week, and the combined airlines began operating as US Airways. Here are answers to frequently asked questions on how this affects travelers: Q: What's the new airline going to be called? A: US Airways. Temporary signage on America West gates and check-in counters will include both names, and telephone reservation agents will say both for a while. America West planes also will keep the company name and logo on them until they are repainted over the next year. Q: Where do I check in now? A: In all cities, look for airport signage to direct you and call the airline before your departure for more information. Q: Where do I buy tickets after the merger? A: For now, book the way you always have, through a travel agent or the airlines. America West is at www.americawest.com or 800-235-9292. US Airways is at usairways.com or 800-428-4322. Eventually, they will have one Web site and one reservations number. Beginning Wednesday, both Web sites will accept the other airline's frequent-flier numbers. Q: What's going to happen to my America West FlightFund frequent-flier miles? A: They will be rolled into the US Airways Dividend Miles program early next year. For now, your FlightFund account stays the same. Until the switchover, you'll get FlightFund miles for flights on the "new" US Airways, including those to destinations America West doesn't serve. Q: What's going to happen to my US Airways miles? A: You'll still have them in your Dividend Miles account. If you've got accounts at both airlines, get out your calculator. The airlines are going to combine frequent-flier accounts, so you might be closer to a free ticket than you think. From usairways at vision.moundalexis.com Fri Sep 30 22:31:13 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 30 Sep 2005 18:31:13 -0400 (EDT) Subject: [US Airways] US Airways initiated with "neutral weight" Message-ID: <20050930183022.C673-100000@vision.moundalexis.com> 30 September 2005 ; NewRatings_ US Airways initiated with "neutral weight" http://www.newratings.com/analyst_news/article_1042872.html --- Friday, September 30, 2005 12:12:14 PM ET Prudential Financial NEW YORK, September 30 (newratings.com) - Analyst Bob McAdoo of Prudential Financial initiates coverage of US Airways Group Inc (USG.FSE) with a "neutral weight" rating. The target price is set to $15. In a research note published this morning, the analyst mentions that the merger of America West with US Airways has been completed. The analyst expects the combined entity, named US Airways Group Inc, to witness losses of approximately $220 million in 4Q05. The unit costs of the combined entity would be lower than that of its peers and of legacy airlines, Prudential Financial adds. From usairways at vision.moundalexis.com Fri Sep 30 22:32:42 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 30 Sep 2005 18:32:42 -0400 (EDT) Subject: [US Airways] World Poker Exchange Pairs Up With US Airways' In-Flight Television to Teach Poker to Passengers Message-ID: <20050930183232.W673-100000@vision.moundalexis.com> 30 September 2005 ; PR Newswire World Poker Exchange Pairs Up With US Airways' In-Flight Television to Teach Poker to Passengers http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-30-2005/0004135827 --- Travelers Can Now Brush Up on Poker Strategies and Game Play While Flying to Las Vegas and 24 Other US Airways Destinations ANTIGUA, British West Indies, Sept. 30 /PRNewswire/ -- The World Poker Exchange announced today that it is partnering with US Airways to include poker tutorial spots on Overture, the airline's award-winning in-flight entertainment program. The 90-second instructional spots are taken directly from the World Poker Exchange's new tutorial DVD series, "In the Minds of the Poker Pros." The tutorial spots will run on all US Airways video-equipped flights that are two hours in length or more. US Airways offers 3,600 video entertainment-equipped flights that reach 400,000 passengers monthly. Each spot in the series of 15 will feature insight into the best minds of poker. Professionals such as David Sklansky, Todd Brunson, Mike Matusow and Kathleen Watterson will provide detailed analysis of real-life poker hands and situations, and pointers on how to play various hands. Passengers traveling from 25 domestic and international markets served by US Airways -- including key poker-playing cities of New York, Los Angeles, Philadelphia, Washington D.C., Atlanta, Pittsburgh, Baltimore and San Diego -- will gain valuable poker game play insight and strategies during their flights. The World Poker Exchange has category exclusivity with US Airways. "The World Poker Exchange is proud to be the first multi-player online poker company to offer poker fans instructional tips while aloft," commented Haden Ware, managing director of World Poker Exchange. "We offer the most comprehensive way to learn the game of poker and to hone game play skills, via worldpx.com, our new instructional DVD series or at 30,000 feet with US Airways," Ware added. From usairways at vision.moundalexis.com Fri Sep 30 22:33:37 2005 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 30 Sep 2005 18:33:37 -0400 (EDT) Subject: [US Airways] US Airways changes terminals Message-ID: <20050930183302.I673-100000@vision.moundalexis.com> 30 September 2005 ; Ahwatukee Foothills News US Airways changes terminals http://www.ahwatukee.com/afn/community/articles/05930a.html --- By Doug Murphy Staff Writer A certain amount of moving and adjusting takes place as part of any merger, and the business merger between America West and US Airways is no exception. Next week the US Airways gates in Terminal 2 will close and move to Terminal 4 where America West has been operating for years at Sky Harbor International Airport. But from now until the change occurs on Oct. 4, US Airways' passengers will continue to arrive and depart from Terminal 2. Starting bright and early on Tuesday, Oct. 4, all US Airways passengers will arrive and depart from Terminal 4. For those passengers who hold America West tickets, nothing will change but the airline's name, with all flights arriving and departing from Terminal 4. Airport staff will provide extra workers in the two terminals to help passengers with the change. Currently about 55,000 US Airways passengers fly in and out of Sky Harbor a month, compared with 1.8 million America West and America West Express passengers. For information, visit www.phxskyharbor.com.