Airlines' merger hits one-year mark
5/21/2006 7:12 PM
By: Brad Broders, News 14 Carolina
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Merger at One Year
US Airways marks one year since the merger that may have saved its life and the life of American West.
CHARLOTTE, N.C. – One year ago two struggling air carriers, US Airways and America West, announced they would join as one and attempt to end their respective financial turbulence.
“Without the merger, it seems like you would have had two airlines that might have made it, but probably would have shown some operating losses for several more years,†said Dr. Peter Schwarz, an airline expert.
The skies are now friendlier for US Airways, the dominant East Cost carrier. The company boasted first quarter profits, and US Airways’ CEO said he expects the profits to continue for the rest of 2006.
Some passengers said US Airways' services have improved.
While some US Airways employees argue the merger hasn’t dramatically changed their work environment, other employees and passengers say otherwise.
“From a personal standpoint, from what I’ve experienced, (the officials are) very, very positive,†said employee Connie Holbrook. “They’re very approachable and I think it’s instilling morale into the US Airways East employees.â€
Passenger Michael Namour said things are getting better.
“I’ve seen a lot of improvements on the services in the last two years. I’ve really never had any problems with US Airways,†he said.
American West planes will soon be repainted.
Soon everything from American West’s Web site to its plane colors will be fused into US Airways’ name. Schwarz said he’s hopeful the merger will eventually make flight prices more competitive in Charlotte.
“I though our fares would fall somewhere in the middle of where they were and Southwest, but in fact they haven’t. They’ve actually been higher than they were,†he said.
There are still hurdles ahead for the merger; US Airways and America West must still bring together labor contracts and operating systems. Talks with pilots are currently underway.
Last week American West officials said the carrier would have declared bankruptcy in 2005 had it not been for the merger. The final merger details should be finalized within the next year.