Is this the end of USAirways?

[PghUSA]

The US Postal Service (itself a dinosaur of inefficency and high prices) has CUT $6.1 million in funds from USAirways (over a 9 month period) for USAirways failure to live up to their contractual terms of mail shipments! Another nail in the coffin for USAirways.

Another reason USAirways is dead I feel:

PITTSBURGH POST-GAZETTE 2/18/2005 announcing SWA service to LV, ORL, CHI and PHI:

"The big surprise in yesterday's announcement was Philadelphia, a market now served exclusively by US Airways nonstop from Pittsburgh. It will give Southwest a toehold in the state's two largest cities.

. . .

"The Philadelphia flights I wasn't expecting, to be honest," local airline analyst Bill Lauer said. "That actually speaks eloquently about what Southwest expects out of US Airways. I think they sense weakness."

Allegheny County Airport Authority board Chairman Glenn Mahone went a step further, saying the decision to fly to Philadelphia "is going to be a standing eight count" for US Airways.

"If you were in [southwest's] shoes, would you not be looking to take their market share?" asked Mahone, a Reed Smith lawyer who said he has found himself paying $475 to $675 for a flight to Philadelphia.

Michael Boyd, a Colorado-based aviation consultant, saw the Southwest move as defensive, designed to protect the carrier's position in Philadelphia.

"That's why they went into Pittsburgh. That is the crown jewel. Philadelphia-Pittsburgh is a key high-density business market. I think they needed that market to help buttress their position in Philadelphia," he said."

[samsonyuen]

Yes, I think US Airways will continue, but maybe not in its current form. I think it will be a much smaller airline, and maybe even a candidate for acquisition. Virgin America might be licking its lips at the most lucrative of US Airways' flights on the East Coast and the Caribbean.

[monsoon]

Apparently some airline in Wisconson is going to invest $125M in USAir. They might be around for a little longer.

[PghUSA]

very interesting on that one, its a "loan" until they emerge from bankruptcy, only then does it become an investment in USAirways . . . creditors get first dibs when a company liquidates, true good news for the airline but curious as far as the fine print, they bascially have a nice little escape hatch. I wonder what their true intentions are in USAirways--since AirWisconsin is privately held they really don't need to (and haven't) answered that question. This kind of smells like a Gordon Gekko move, then again they do actually run routes over there in Appleton so they could run an airline if neccessary. Just with it being private and the large amount you have to wonder if they are looking at auctioning off assets possibly--remember that Berkshire Hathaway used to be a textile company until Buffet did the same thing to them.

[uptownliving]

USAirways delayed filing its Reorg plan for the 3rd time today....now its due at the end of April...instead of today.

There are also rumors flying around they might merge with America West....we shall see.

[Miesian Corners]

There are also rumors flying around they might merge with America West....we shall see.

<{POST_SNAPBACK}>

Dear God! Inept management (Ed Colodny) completely screwed up the merger with West Coast-carrier PSA in 1987. They're gonna try it again?

[monsoon]

They did screw up this weekend and sell a bunch of tickets online for less than $2. haha

[tombarnes]

I hope they hang around for a little while longer. I was just given a free ticket for vlounteering my seat last week. It would be a real downer if they were to go out of business like Independence Air. The attitude of staffers at USAir has also improved lately, probably a result of the merger. I realize that I have spoken out about the desirability of their disappearing from the scene entirely. While I still firmly believe that many of the current airlines will have to drastically change the way they do business, the wholesale elimination of carriers is probably not a great thing for the average consumer.

[PghUSA]

^^Wasn't it a buyout? They are keeping the USAirways name but for all intents and purposes it's the new AmericaWest (Arizona HQ, etc. etc.)

I am glad to see that much of what was known as USAirways in 2005 remains entact and has a shot in the arm from the synergies with the buyout. This has (along with IAir's and Hooter's departure from the scene) dampened competition, basically 2005 saw 3 big east-coast airlines go bye-bye. USAirways remains but there is one less competitor at many airports now with AmericaWest's name being taken down.

[monsoon]

Well the sad thing about it, is they used US Bankrupcy laws to shed themselves of their obligations leaving many people holding the bag and the US taxpayers now footing the bill for their pension plan. And the end result is the senior management all give themselves big bonuses because they pulled this off. Major corporations are bringing down this country and the politicians, who are being paid off, are allowing it to happen.

[damus]

Major corporations are bringing down this country and the politicians, who are being paid off, are allowing it to happen.

Corporate greed a la Enron, which is supposedly mitigated by Sabarnes-Oxley (in my opinion more busywork), is a huge problem. Just as big a detriment to our economic health is the tax system. Sure, there's corporate welfare, but it's tougher to get a business off the ground than it used to be. Don't forget corporate mismanagement like in Detroit, where they figured they're making boatloads of money at the time, so what's the harm in promising outrageous benefits. I think the markets need to be a little more free than they are now and with lower taxes. It's terrible that the huge corporations use their weight and get tax breaks to build in America while a small business simply can't do that.