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America West Airlines: An era ends
The upstart Tempe-based airline that grew into US Airways has been part of the Valley landscape since it formed in the 1980s.
Republic file photo
By Dawn Gilbertson
The Republic | azcentral.com
Sat Feb 16, 2013 6:23 PM
In a speech at the Arizona Biltmore last summer, Ed Beauvais recalled the chilly reception his upstart America West Airlines received from other airlines when it began flying out of Phoenix Sky Harbor International Airport in 1983 with flights to four cities.
The frostiest welcome came from one of its neighbors in Terminal 3: American. In the early years, the two were engaged in a “slugfest” on every route on which they competed, he said. “They just couldn’t conceive of the fact that we were an airline on par with American,” Beauvais told employees at an America West reunion.
“It’s for that reason that I hope that Doug Parker succeeds.”
Parker, chairman and CEO of Tempe-based US Airways, did prevail last week, announcing an $11 billion merger with the much-larger American after pursuing the Dallas carrier for more than a year. The new airline, the largest in the world in terms of passenger traffic, will be run by Parker.
America West wasn’t mentioned in announcements of the merger, and its name didn’t come up at news conferences in Dallas or Phoenix. Beauvais, 76 and retired, watched the news on TV at home.
But the spunky, familylike airline that grew into a major carrier and a huge Arizona employer is an unmistakable part of the story. There would be no US Airways-American merger, at least in its current form, if it weren’t for America West. It was America West, under CEO Parker, who bought the larger US Airways out of bankruptcy court in 2005 to form the new US Airways, based at America West’s old Tempe headquarters.
Beauvais, who left America West in 1992 during its long, painful bankruptcy restructuring and has no ties to US Airways today, takes no credit for the merger but does see the deal as what-started-as America West merging with American.
“I’m very proud of the fact that it will soon be the largest airline in the world,” he said in an interview Friday.
But for a tribute plane in US Airways’ fleet and mementos at US Airways’ headquarters, the America West name went away after the 2005 America West-US Airways merger.
The day the America West sign was replaced with US Airways’ logo atop the airline’s headquarters on Rio Salado Drive in downtown Tempe was emotional for longtime America West workers and Arizona residents who lived through the scrappy airline’s roller-coaster ride into the history books as one of the few airline-deregulation success stories.
There were the R-E-S-P-E-C-T commercials starring singing employees, the non-stop flights from Phoenix to Hawaii and Japan on a Boeing 747, and a crazy half-price ticket and gift-certificate sale in December 1990 that drew 100,000 people to the new Terminal 4 at Sky Harbor, four times the number expected. Beauvais said the airline took in $100million in one day from the sale. It still had to file for bankruptcy six months later.
America West’s darkest days, during its 1991-94 bankruptcy case, drew unprecedented community support for the hometown airline. High-profile businesses including Dial Corp., Phelps Dodge Corp., major banks and the Phoenix Suns loaned the airline a total of $8million as part of a larger financing package to keep it afloat while it reorganized.
America West emerged from bankruptcy in 1994 with Phoenix business leader Bill Franke, recruited by then-Arizona Gov. Fife Symington, at the helm. He stayed until Parker was named chairman and CEO 10 days before the Sept. 2001 terrorist attacks.
America West employees still get together to toast the airline, as they did at the large reunion at the Biltmore last summer. Beauvais, who spoke for a half-hour and was frequently interrupted by applause, was given an “I Love America West” coffee mug.
“They were very proud of what was accomplished since the beginning of the company,” Beauvais said. “It was kind of a celebration.”
If the US Airways-American merger closes this fall as expected, Arizona will lose a significant piece of the former America West. The headquarters of the merged airline will be in Fort Worth, Texas, where American is based. Parker and other executives will relocate from their Tempe headquarters. After 30 years, Arizona will no longer boast a major hometown airline.
Beauvais isn’t especially wistful about the loss of the headquarters. He calls it a business decision common in mergers and said he believes Phoenix will continue to prosper as a hub for the new American.
“I’m just totally impressed with Doug Parker and his ability to consummate a transaction for the benefit of the company,” he said.
Franke, who has 10 model America West planes lined up on a counter behind the reception desk at his Phoenix investment firm, said he, too, hasn’t “personalized this.” He said the headquarters relocation is part of the price of the merger, which he supports.
“I don’t sit around and fret about it,’’ said Franke, whose investment firm has stakes in other airlines, including Spirit Airlines, where he is chairman.
Franke, who has lived here for 40 years, still is sorry to see the headquarters move.
“This is a hard thing for people who have spent time in the community,” he said. “It is the end of an era. I don’t think there’s any doubt about it.”
Reach the reporter at dawn.gilbertson@arizonarepublic.com. Follow her consumer travel updates on Twitter @dawngilbertson.