News Listings for US Airways Shuttle

  • Turbulence at US Airways

    News | 01 Feb 2004 00:00

    <p>Against a backdrop of rising costs and tough competition from low-cost carriers, US Airways is asking staff for more concessions and exploring asset sales.</p> <p>The 10-month-long journey of US Airways since it left court bankruptcy protection at the end of March 2003 has got rougher, as low-cost carriers and increased costs have made deeper inroads into its performance. In response, management has sought deeper concessions, which labour promptly refused. In turn, US Airways let it be known that it had hired Wall Street firms to catalogue and put a price tag on its assets for a possible sale or break-up.</p> <p>Such a move may be mere sabre-rattling, but a serious downsizing or even elimination of the airline would profoundly alter the competitive landscape of the eastern USA, while marking the ability of the low-cost carriers to topple a legacy carrier that they had already weakened. A weakening of US Airways would demonstrate that bankruptcy reorganisation is limited as a cure
  • Regulatory hurdles remain for United's merger plans

    News | 31 Mar 2001 23:00

    <p>United Airlines' $4.3 billion plan to carve up US Airways with the aid of an American Airlines scalpel faces further regulatory delay and labour obstacles, although American's $742 million take-over of Trans World Airlines has passed nearly all the legal hurdles before it. </p> <p>The antitrust authorities at the Justice Department, putting off a 2 April deadline for a decision on clearing United's buyout of US Airways Group, requested more details of United's plan to sell some US Airways assets to American. </p> <p>On 10 January United and American had agreed a $1.2 billion sale of airport gates and aircraft to take place immediately after it closed the US Airways take-over. American would also jointly operate the lucrative US Airways Shuttle in the Northeast and fly some key routes either in competition or in co-ordination with the merged United/US Airways. </p> <p>United played down the antitrust request for more details, saying that it had been only weeks since American becam
  • American wins out in court tussle for TWA

    News | 20 Mar 2001 00:00

    <p>Ramon Lopez/WASHINGTON DC </p> <p>American Airlines parent AMR has won its bid for Trans World Airlines, with a federal bankruptcy court ruling that only a sale to the Dallas-based giant will save TWA from liquidation. The judge also voided a ticket contract with TWA held by rival bidder and former owner Carl Icahn, an AMR condition of the buy. </p> <p>Icahn has filed an appeal, and the purchase is still under anti-trust review by the US Department of Justice (DoJ), but AMR hopes to close it next month, integrating TWA's operations into American's. AMR's offer for St Louis-based TWA totals $742 million (Icahn's final offer was $1.1 billion), plus the assumption of $3.5 billion of debt on 175 TWA aircraft. </p> <p>The decision clears the way for further federal rulings in the latest round of US airline consolidation, though it is unclear when the DoJ will rule on United Airlines' planned acquisition of US Airways. </p> <p>The period for completing the deal has been extended beyon
  • American ups its Trans World bid

    News | 13 Mar 2001 00:00

    <p>Ramon Lopez/WASHINGTON DC Chris Jasper/LONDON </p> <p>American Airlines has raised its bid for Trans World Airlines to $742 million, with the latter recommending that a US federal bankruptcy court accept the sweetened offer. United Airlines and regional operator Atlantic Coast Airlines (ACA) have meanwhile confirmed plans for ACA to buy three US Airways carriers as part of the planned merger between the two majors, while Delta Air Lines chief executive Leo Mullin has cast doubt on suggestions that Continental Airlines could engineer a 'reverse takeover' of Delta in response to the other deals. </p> <p><img src='../Assets/GetAsset.aspx?ItemID=5247' /></p> <p>American's improved bid for TWA followed an initial $500 million one, and topped a late $650 million offer from a group led by TWA's former owner Carl Icahn and investment banker Brian Freeman. Investor group Jet Acquisitions has bid $889 million, although doubts remain over its ability to raise the cash, while Galileo Intern
  • The merger puzzle

    News | 01 Feb 2001 00:00

    <p>RICHARD PINKHAM ATLANTA, GEORGIA</p> American Airlines' recent announcement that it would purchase the holdings of ailing Trans World Airways and work with United Airlines to divide large portions of US Airways between them has thrown the industry into a frenzy. <p>Mere weeks ago, TWA's fate was on no- one's radar screen. A buy-out seemed the carrier's only hope for survival in any form, but few believed a buyer would emerge. Now, TWA finds itself at centre stage. Viewed as the lynchpin to wholesale industry consolidation, it is the focus of bids by American, Continental and Northwest Airlines. At stake is not so much the future of the St Louis-based carrier, as the ability to determine the shape of the entire US industry. </p> <p>In looking at the proposed moves, critics say they would make for an airline industry that harms consumer interests. Advocates claim the deals would save two failing carriers and enhance efficiency to everyone's benefit. So what would American's purch
  • United: aiming for national coverage

    News | 05 Jun 2000 23:00

    <p>Chris Jasper/WASHINGTON DC</p> <p>Though United Airlines' planned takeover of US Airways, announced last month, is remarkable for several reasons, its essential characteristic is size. United is already a "super-carrier", and by absorbing US it will move to another level, with an annual turnover almost a quarter greater than its nearest rival, AMR/American Airlines.</p> <p>Despite United's already considerable bulk, it would be wrong, however, to dismiss the takeover as inspired solely by the desire to further add to its own mass, because for the Chicago-based giant, the US Airways deal is really about attaining national coverage. When US chairman Stephen Wolf describes the merger as "a milestone in commercial aviation" he is talking not so much about the transaction's size - total value $11.6 billion - but its impact. UAL chairman James Goodwin says that through it United will become the country's first truly national airline - by which he means "the first carrier with a strong p