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

Lima, Peru

A Travel Guide to Peru: Things to Know

Peru is a cultural hub filled with unique sights to see, amazing cuisine, a plethora of activities, and is definitely somewhere worth putting on your travel bucket list, but there are a few things to know before planning your trip.

Subscribe to our newsletter

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

Want more Travel?

Most Popular

Six Thais, one Italian injured in car bomb blast on Thailand's Samui island

Thailand Car Bomb Explosion: Injures 7 In Popular Resort Island, Act Of Islamic Insurgency?

Thailand Car Bomb Explosion – On Friday, a bomb exploded at the Central Festival shopping mall in Samui Island in Surat Thani province, one of the country’s popular resort islands. The Thailand car bomb explosion, which went off in the basement of the mall after a fashion show at 11:30 p.m., injured seven people, according to authorities.

7 died in a plane crash near Bloomington, IL while returning home from NCAA championship game

Bloomington, Il Plane Crash: 7 Dead While Returning From NCAA Tournament, NTSB Investigating

Bloomington, Il Plane Crash – Seven people died after a small plane crash in McLean County, Illinois, near the Bloomington airport Tuesday while on its way home from the NCAA basketball tournament in Indianapolis. Authorities said that two members of Illinois State University's athletic department were amongst those killed in the Bloomington, Il plane crash.

Dozens arrested as violence erupts at Kentucky's basketball celebration

Lexington Fans Arrested: Wildcat Fans Rampage Over Loss, 31 Arrests Made

Lexington Fans Arrested – Following the loss of Wildcats to the Badgers, a number of Wildcat fans were left bewildered over the loss. However, some fans were quite enraged that they took their rage literally with a number of fires spread in the University of Kentucky’s Lexington Campus.

Caribbean Beach

Delaware Family Pesticide: Family In Critical Condition Following Alleged Pesticide Poisoning At Caribbean Resort

Delaware Family Pesticide – What should have been a safe and enjoyable Caribbean getaway turned out to be a deadly one. A family from Delaware is in serious condition following an alleged pesticide poisoning at the Sirenusa Resort on St. John in the US Virgin Islands.

75,000 Solar Workers To Be Trained By 2020, Says Obama

75,000 Solar Workers: To Be Trained By 2020, Says Obama

75,000 solar workers will now be trained due to a new initiative to expand the nation’s solar industry workforce. The launch of the 75,000 solar workers initiative was made by President Obama during a visit to Utah’s Hill Air Force Base on Friday, according to the Washington Post.

Hundreds of fishermen rescued following Indonesian slavery probe

Hundreds Of Fishermen: Rescued From Slavery In Indonesia, Tasered, Beaten, Whipped With Stingray Tails, Forced To Catch Fish For Western Restaurants?

Hundreds of fishermen rescued Friday from an isolated Indonesian island occurred after an investigation by the Associated Press investigation revealed the workers were enslaved to catch seafood possibly ending up in Western restaurants.

U.S. Navy alarmed at Beijing’s ‘Great Wall of sand’ in South China Sea

China’s Great Wall Of Sand In South China Sea, Why Is U.S. Navy Alarmed?

Great Wall Of Sand – China has been building a “Great Wall of sand” with the use of an unparalleled program of land reclamation in the South China Sea. Because of this great wall of sand, many are having "serious questions" about the country’s intentions for it, according to the BBC.

Viktor Leonov docked on a Cuban wharf.

Kamchatka 43 Dead Trawler: Russian Trawler Sinks Off Kamchatka, 54 Confirmed Dead, What Cased Trawler To Sink?

Kamchatka 43 Dead Trawler – A Russian Trawler off the Kamchatka peninsula has reportedly sunk. The trawler reportedly had 132 people on board. 54 of the sailors are confirmed to have died. While 63 of the people have been rescued, 15 people are still missing.

Nepal Rhino Attacks Town in southern Nepal

Viral Video: Giant Rhino Chases Motorcycles, Injures 6 And Kills 1 In Nepal

Viral Video - Giant Rhino Chases Motorcycles – In Nepal, it is not surprising to see rhinoceros in and around the area. However, one surprising event was when one rhinoceros decided to stray from its natural habitat and started chasing motorcycles.

Find Us on Facebook

travelers today

© Copyright 2015 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics