Subscribe Now

travelers today

Home » News

Will US Airways Or American Airlines Business Model Take Lead In New Merged Company? [VIDEO]

Travelers Today       By    Antranig Dereyan

Updated: Feb 15, 2013 11:23 AM EST

Text Size: A A A

The tail sections of American Airlines (L) and US Airways aircraft
The U.S. government does not want the American-US merger to happen. The Justice Department and attorney generals from six states and Washington, D.C., are challenging the merger of American Airlines and US Airways, saying the $11 billion partnership would lead to higher airfares and less service for customers. (Photo : Reuters)

With the US Airways and American Airlines merger all but completed, the question becomes:

What exactly will happen to American Airlines?

According to USA Today [it] will in some ways very much resemble the American of old. It will bear American's iconic name. Its planes will wear its logo. It will be headquartered in American's home town of Fort Worth.

However, it will not be like "business as usual" as, current American Airlines' CEO Tom Horton will not be running the show.

Share This Story

Everything will be overseen by US Airways CEO Doug Park and that brings up more questions?

Whose frequent-flier program will be implemented?

USA Today states that " US Airways has a generous upgrade policy and promotions to accrue miles, though it can be hard to redeem them for free tickets. American has a generous redemption policy but a difficult upgrade program."

That answer could be the decided factor in just how successful the $11 billion merger, creating the world's biggest airline will be when competing with rival carriers United, Delta and Southwest.

US Airways has had a "more spartan type of operation," says Henry Harteveldt, travel industry analyst for the consulting firm Hudson Crossing. In contrast, he says, American has catered more to the corporate flier who will pay more to sit in premium-class seats. "They have to find a new culture, and that might be a little bit from US Airways, a little bit from American, and a little bit that's completely new," he says, according to USA Today.

"With US Airways funneling passengers through its East Coast strongholds in Charlotte and Philadelphia married to American's broad international network, the new American should be a competitive match for United's and Delta's world-class size and reach," claims USA Today writer, Charisse Jones.

"We'll be at a scale where you have three large global airlines," Parker told USA TODAY. "There were two airlines that, through consolidation, had gotten larger than American and US Airways, and it was difficult for either of us to compete with them on the same scale," reports USA Today.

Another issue is figuring out which airline style will be the company model going forward.

"US Airways has been profitable by cutting amenities, and as an American passenger, I worry about the frills I've become used to becoming a thing of the past," says Gary Leff, co-founder of the frequent-flier community Milepoint.com.

He gives the example of, "US Airways, for instance, lacks the extra-legroom option in coach that American currently offers," adding, "It will be a real challenge for that culture not to undermine the service that American has become more known for."

In any case, this merger represents the new face of the industry--where airlines need to consolidate to stay afloat.

In 2008,Delta and Northwest joined forces; United and Continental linked up in 2010; and Southwest completed its purchase of AirTran in 2011.

With all of these consolidations bringing up issues for passengers, what about the workers?

"This should benefit both travelers and workers," James Little, international president of the Transport Workers Union, which represents workers at both carriers, said in a statement.

The deal still has to go through the proper channels to be approved, but all appears to be on course, with no roadblocks and once completed, all of these questions will be answered.

© 2015 Traverlers Today, All rights reserved. Do not reproduce without permission.
Join Our Conversation

Travel Tips

European City

Managing a Home Stay on your Travels Abroad

Whether a student or avid traveler, staying with a host family can be an amazing experience with first hand exposure to the culture, language, and food. But, of course there are fears and worries about staying with a family you have never meet, and the host family has them too about letting a stranger into their home. You want this time that you are staying with them to be enjoyable, full of intercultural learning and exchanges.

Subscribe to our newsletter

Receive the latest travel news, reviews, and more..

Want more Travel?

Most Popular

Young Italian aid workers who have been released.

Italy Denies Paying Ransom To Free Two Young Aid Workers; Foreign Minister Paolo Gentiloni Says, ‘We Are Against Paying Ransom’

Italy denies paying ransom to free two young aid workers who were held captive for five months in Syria. According to Italy’s foreign minister, Paolo Gentiloni, “We are against paying ransom.”

Kentucky's own Bonnie and Clyde: Dalton Hayes and Cheyenne Phillips.

Kentucky Teens Crime Spree: Youngsters Suspected Of Car Theft Finally Apprehended

Kentucky teens crime spree made the headlines early Sunday morning. These teenage sweethearts were found grabbing some shut-eye inside a stolen pickup truck in Florida.

President Barack Obama

Obama: Paid Family Leave Is A Worker’s Right!

President Obama wants paid family leave to happen.

Berlin Mosque Outspoken Against Paris Attack

Duke Chapel Call To Prayer: Muslim Students At Duke University To Start Weekly Call-To-Prayer, Aid In Restoring Peace?

Duke Chapel Call To Prayer – Muslim students enrolled at the Duke University are set to start a weekly call to prayer. This is the latest according to the announcements made by school officials. Call to prayers will begin on Friday. Will such actions restore the peace between non-Muslims and Muslims in and out of Duke University?

Kim Jong Un

North Korea US Talks: DPRK Promises To Stop Nuclear Tests If Washington Promises To Stop Joint Military Exercises With South Korea

North Korea US talks may or may not happen following the former nation’s renewed bid to sway Washington’s decision after it rejected Pyongyang’s proposal to suspend nuclear tests under the condition that yearly American military drills with South Korea were put off. According to An Myong Hun, if the proposal is accepted, “many things will be possible this year on the Korean peninsula.”

Chris O'Leary shares picture on Twitter.

Passenger Delta: 65-Seater Regional Jet Flies To New York With Only Two Passengers

Passenger Delta flies to New York with only one other person. Today, flights are almost always packed that finding an empty middle seat has become somewhat of a rare luxury.

Memorial grows for 4 men shot in killed in San Francisco shooting Friday night

San Francisco Shooting: 4 Murdered In Hayes Valley, Suspects Still Hunted, Gang Related Shooting?

San Francisco Shooting – Four men were murdered in the upscale Hayes Valley neighborhood Friday night, according to authorities. The victims of the San Francisco shooting who were reportedly shot to death were found shot inside a black 2005 Honda parked near the corner of Page and Laguna streets.

Mass Unity Rallies Held Around The World Following Recent Terrorist Attacks

United States Issues Worldwide Travel Alert: Recent Terror Attacks In Paris And Hostage Taking In Sydney

United States issues worldwide travel alert following the recent terrorist attacks in Paris and Sydney. This alert comes after the announcement that French police have once again managed to track down and kill three of the hostage takers involved in the attack on Charlie Hebdo.

Major Floods Swamp Metro Detroit Area

Interstate 94 Pileup: Lanes Reopen After Deadly 193-Vehicle Pileup

Interstate 94 Pileup – After the deadly pileup involving more than 100 cars in the Interstate 94 at Michigan, all lanes have now reopened. The lanes have reopened on Sunday, which was two days after the pileup that claimed one life while leaving more than a dozen injured.

Find Us on Facebook

travelers today

© Copyright 2015 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics