|
 |
|
|
|
|
|
|
Wednesday April 20, 12:19
|
|
US Airways and America West Airlines to form an effective couple
(by Helen Snow)
|
|
US Airways and America West Airlines are eager to enter the talks on the potential merger to create a national low-cost airline discount king competing with Southwest Airlines in size and prices.
However, a deal is just in the process and remaining obstacles can be essential enough to break it down. The most difficult issues seem to be US Airways Group Inc. being filed in Chapter 11 bankruptcy protection. To come into power, a deal should be approved by a number of parties, such as the bankruptcy judge, US Airways creditors etc.
But if a deal gets success, it could create the atmosphere for a long-expected consolidation of the airline industry, in which companies are fighting with high oil prices, too many seats, pension costs and brutal ticket-price wars.
US Airways, the nation’s seventh-largest carrier, and America West, which is No. 8, being together, would form an airline power that would be able to overrun Southwest, the sixth-largest at the moment.
Moreover, they would effectively compete with other hub-and-spoke airlines, which have much higher costs.
|
|
All world news
|
|
|
|
|
|
|
|
|
|
 KEYWORD SEARCH |
|
|
|
|
|
SUBSCRIPTION |
|
|
|
|
|