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

Blogs help you keep your family and friends updated.

So You Want to Write a Travel Blog? A Guide

So you do want to write a travel blog? Do not worry, it is not as hard as it seems. There are a few things, however, that you should keep in mind while creating, writing, and keeping up your blog. Here is a helpful guide to get you started.

Subscribe to our newsletter

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

Want more Travel?

Most Popular

Delta Airlines

Delta Airlines Loses Dog, Owner Left Clueless: Should He Sue Delta For Misplacing 'Very Precious Cargo?'

Delta Airlines loses dog after misplacing the dog owner's precious cargo on one of its recent flights. Now the owner is upset since he is left clueless by the airlines on what really happened to his pet.

columbus farmers market veggies

Columbus Farmers Market Fire: Spectacular Blaze Fueled By High Winds Severely Damages Sprawling Building In Burlington County

Strong winds fueled a growing flame leading to severe damages to a sprawling building at Columbus Farmers Market.

See pandas up close and personal at the Chengdu Research Base of Giant Panda Breeding.

Up Close and Personal with Giant Pandas: Chengdu is Calling

Settled in Southwest China is the city of Chengdu. It has lots of beautiful gardens and structures, but what it is most well known for is the Chengdu Research Base of Giant Panda Breeding. The research base is just outside the city center and gives tourists a chance to see giant pandas up close in a truly unique way.

Massive Delays, All Flights Halted At Chicago's O'Hare and Midway international airports due to air traffic control fire

Chicago Plane Crash 2014: Pilot Dies, Elderly Couple Miraculously Survive, What Led To Crash?

Chicago plane crash 2014 – Shortly after taking off at the Midway Airport Tuesday morning, a twin-engine cargo plane had crashed at the Southwest Side home. The plane's driver has been confirmed dead while the residents of the home, being an elderly couple, had miraculously survived.

Thai royal flag

Thai Radio Host Jailed: Five-Year Prison Sentence For Monarch Defamation, No Room For Appeal In Military Court?

A Thai radio host jailed recently was put behind bars for five years due to royal defamation, according to his lawyer Tuesday. The Thai radio host jailed is reportedly one of the first sentences passed by a military court for breaching the Lese Majeste Law since a May coup.

Gordon Ramsay

Gordon Ramsay: Fake Reservations At New Restaurant Are Part Of Rival's 'Sabotage' Plan

Gordon Ramsay got fake reservations in his restaurant and they were apparently from his rival restaurant.

Holiday Getaway

Why You Should Head To Europe For Your Next Holiday Getaway!

Thinking of traveling this Thanksgiving and Christmas season? But afraid spending much too much over your next last-minute getaway? Here are some of the best tips to follow if you intend to save much while enjoying the perfect European holiday getaway.

New York Pot Arrests

New York Pot Arrests: New Policy Promotes Summonses Instead Of Arrests Since Officers Want To Focus On Other Crimes

New York pot arrests are going to be different this time around after a few changes on the city's marijuana policy have been made.

USS Ross Sailors Attacked By Turkey Youth Union In Istanbul

USS Ross Sailors Attacked By Turkish Mob In Istanbul, Bags Placed Over Heads?

USS Ross sailors attacked by about 20 political activists happened in Istanbul Wednesday. Members of the Turkish Youth Union hurled objects at them, chased the three men and at one point, placed a bag over one of the heads of the USS Ross sailors attacked.

Find Us on Facebook

travelers today

© Copyright 2014 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics