The long-discussed merger between America West Airlines and US Airways will bring the combined airline’s headquarters out West.
The combination would form one of the industry’s most financially stable airlines with $10 billion in annual revenues, approximately $2 billion in total cash and among the lowest debt levels of all major airlines.
After the merger, the airline will operate under the US Airways banner, but America West CEO Doug Parker will run the show. The carrier intends to operate as a full service nationwide airline but with a low fare consumer pricing structure.
Full-service consumer benefits include assigned seating, an attractive frequent flyer program, and Fist Class seating options.
Some of the benefits of the merger cited in a press release include restructuring routes for more efficient operations, better matching of aircraft size to consumer demand, and the addition of service to popular tourist destination Hawaii.
The post-merger airline will be the fifth largest in the country, and will operate a fleet of 361 planes. Both airlines operated a combined 419 planes at the beginning of 2005. America West’s purchase of new Airbus A320 aircraft will go forward as scheduled.
One significant concern will be the ability of the airline to merge its respective employee rosters. Seniority will factor in as the airlines negotiate with the labor groups representing each set of employees.
This morning, the airlines will host a conference call with industry analysts, and brief them on details of the merger. Also, the merger remains subject to the requirements of the US Bankruptcy Court, which has been overseeing US Airways pending Chapter 11 case.
David Utter is a staff writer for Murdok covering technology and business. Email him here.
