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.

© 2014 Traverlers Today, All rights reserved. Do not reproduce without permission.
Join Our Conversation

ADVERTISEMENT

Travel Tips

Prince Edward Island, Canada

Fall Cruises: Better Than Land Tours? It Gives Guests ‘A European Experience Without Leaving North America’

Fall cruises for foliage in the northeast are now becoming more and more popular as each year goes by. The foliage that is part of the tour is unlike any other place in the country. In fact, more guests are even paying good money to cruise the rivers, as well as the oceans, in order to peep leaves instead of having to brave today’s highly crowded roads and hotels on land.

Subscribe to our newsletter

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

Want more Travel?

Most Popular

Daniela Poggiali

Nurse Kills 38 Patients Because She Got Annoyed; Co-Workers Say Italian Nurse Daniela Poggiali Is 'Cynical And Vindictive'

Nurse Kills 38 Patients - Italian nurse Daniela Poggiali is one healthcare professional you should be wary of if ever you get confined in a hospital in Italy. For one thing, she is notorious for killing up to 38 patients after she got completely annoyed of them or of their families.

Cattle Return From Alpine Summer Grazing

World's Tallest Cattle Found In Illinois, How Tall Is Blosom The Cow?

World’s tallest cattle is found in Illinois. Owned by Patty Hanson, Blosom the cow has been named Guinness World Records’ tallest cow. How big and tall exactly is Blosom?

Grizzly Bear

Man, 56, Attacked By Bear Shot Accidentally By Hunting Partner Who Tried To Save Him From The Beast

A man attacked by bear was shot by his friend while the latter was attempting to spare him from the brutal attack of the beast.

Debris field spotted on radar at time of the Louisiana loud boom

Louisiana Loud Boom: Mysterious ‘Sonic Boom’ In The Sky Rattles Residents, ‘Debris Field’ Spotted, What Is The ArkLaTex ‘Boom’?

The Louisiana loud boom which was heard and rattled many north eastern Louisiana residents is as of this moment still left unexplained. However, now the National Weather Service has added that whatever the cause of the Louisiana loud boom, it has left a debris field.

Illness Observation

Ebola Airborne CDC: Widespread Outbreak Possible, More Contagious Virus Than Thought

The Executive director of the Association of American Physicians and Surgeons, Dr. Jane Orient, claimed the world is dealing a different kind of Ebola virus, one which is more potent and can be transmitted in air via droplets.

Brazil is currently treating and monitoring its first suspected case of Ebola. A 47 year-old man from Guinea reportedly manifest fever withing the 21 day-incubation period of the virus.

Brazil Confirms First Suspected Ebola Case

Brazil treats its first ever suspected case of Ebola while waiting for the results of a blood test which is due to be released on Saturday.

Ebola Press Conference Boston Logan Airport

Ebola In Boston: Two Ebola Mass. Scares Raises Fears Despite Braintree Patient Declared Not At Risk, What Is The Different Types Of Ebola Risks?

Fears over Ebola in Boston have heightened after two Massachusetts scares flared up over the Columbus Day weekend. Raised concerns over Ebola in Boston have since prompted holiday press conferences and reverse 911 calls to reassure the public.

American Airlines jet landing at DCA

American Airlines Flight Depressurized Due To Cracks In Cabin Walls; Plane Had Emergency Landing

American Airlines had to have an emergency landing after its cabin walls started to break apart as its passengers, absolutely terrified, had no choice but to look on and shout for help. One of the passengers, James Wilson, said that he felt something was wrong when the fuselage started to shake violently and heard some popping noises outside the plane.

Tropical Storm Ana 2014

Tropical Storm Ana 2014: Hurricane Watch May Be Required In Hawaiian Islands Because Of Strong Intensity Tropical Storm

Tropical Storm Ana 2014 - The new tropical storm named Ana is currently getting stronger and stronger with maximum sustained winds at 70 mph or 110 km/h and it is expected to hit the main Hawaiian islands on Wednesday, KHON2 first reported.

Mount Sinabung spews pyroclastic smoke, seen from Tiga Pancur village on February 12, 2014 in Karo District, North Sumatra, Indonesia.

Mount Sinabung Eruption 2014: Hauntingly Beautiful Lava And Ash Prompts Evacuations, Eruption Reaches Fourth Successive Day

A Mount Sinabung eruption 2014 occurred Friday, with the volcano spewing tons of molten lava and ash, captured in hauntingly beautiful photos. The initial Mount Sinabung eruption 2014 for the month, the latest in a recent set of eruptions of the Indonesian volcano took place Wednesday afternoon.

Find Us on Facebook

travelers today

© Copyright 2014 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics