Timetable for merger?

Old Jun 14, 2005, 7:25 am
  #1  
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Timetable for merger?

Does anyone know when they can expect approval? I'm getting ready to book a PHL-AUA trip and would prefer to travel USAir non-stop and get the mileage credit as well.
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Old Jun 14, 2005, 3:13 pm
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Originally Posted by TopGun
Does anyone know when they can expect approval? I'm getting ready to book a PHL-AUA trip and would prefer to travel USAir non-stop and get the mileage credit as well.
They have to have the auction in bankruptcy court first. The court must approve whatever's best for the creditors.

Assuming HP is the winner, mileage reciprocity and some sort of codeshare would ensue fairly quickly.
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Old Jun 24, 2005, 1:09 am
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Justice Dept Approves Merger

One more step...

The Justice Department yesterday cleared the proposed merger of US Airways Group Inc. and America West Holdings Corp., finding that any overlap between the carrier's routes would not hurt competition in the hyper-competitive budget airline industry

http://www.washingtonpost.com/wp-dyn...062301870.html
(registration required)
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Old Jun 24, 2005, 4:24 am
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I requested and Elite match and was matched to Silver on USAir so that I will get miles and bonuses for upcoming flights. I recently moved to PA from AZ, so this will help a good deal. If the merger occurs, the miles will be merged.
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Old Jun 24, 2005, 7:36 am
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Here is a link that doesn't require registration... http://money.cnn.com/2005/06/24/news...reut/index.htm
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Old Jun 29, 2005, 11:53 pm
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Originally Posted by kanerf
If the merger occurs, the miles will be merged.
Yeah, but will the elite qualifying miles you earned on US Air be combined with your elite qualifying miles on HP to get your 2007 status?? Ah...
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Old Jun 30, 2005, 9:32 am
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Originally Posted by JohnnyP
Yeah, but will the elite qualifying miles you earned on US Air be combined with your elite qualifying miles on HP to get your 2007 status?? Ah...
That's a great question. I've wondered about it as well.

If they get the deal done by the end of October and one of the first things to be merged is the FF programs, you'd think they would have to combine the EQM's that you earned on both airlines. They could, however, offer reciprocal benefits to members of both programs until year-end, then combine at that point, giving you status in the new program for the following year based upon what you earned in either program, but not both.
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Old Jul 3, 2005, 1:11 pm
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USAir offered me comp status but had no other information on a program merger. Thry wanted me to send them proof of Silver status to their service center.
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Old Jul 11, 2005, 11:30 pm
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Extended Status?

My biggest hope is that concurrent with the merging of the FF programs, they'll extend the expiration of my Elite status out another year. That'll take some of the stress of keeping my status out of what's shaping up to be a low flying year.
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Old Jul 13, 2005, 3:59 pm
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Looking through US's FAQ section today on the merger I came across the following statements:

When do you expect to integrate the operations of both carriers?

For regulatory purposes, we anticipate both airlines will operate under separate certificates for a transition period of two to three years, keeping flight crew, maintenance and safety procedures for each airline separate. We will work closely with the unions of both companies, as well as the FAA, to develop a timetable for integration. Should there be any competing interest as to which union might represent a workgroup, the National Mediation Board will establish those procedures.
To ensure that the substantial consumer benefits are realized quickly, the airlines will work together to coordinate schedules, pricing, frequent flyer and other marketing programs under the US Airways brand as soon as practical once all regulatory approvals are received.

Will a US Airways ticket be honored on America West and vice versa? What about reciprocal frequent flyer benefits?

Until regulatory approval, we will continue to operate independently, with no joint ticketing, marketing or customer benefits offered.

Will the merged airlines participate in the Star Alliance and the codeshare agreement with United Airlines?

The merger envisions continued participation in the Star Alliance and code sharing with United Airlines. Now that the merger agreement is complete and announced, we can begin discussions with Star Alliance carriers and United to address the issues.


Now, from what I can read from this is that they would run separately and independently for two to three years. They then go on to say in the other FAQ that "until regulatory approval" there will be no customer benefits offered. Is the bottom line here that it will be until fall 2007 or 2008 I can start redeeming HP miles on US, vice versa, and enjoy a new FF elite program? If that's the case, I'm not sure who is going to wait around that long for something better to come along. Or am I off?
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Old Jul 13, 2005, 4:50 pm
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Originally Posted by enviroian
. . . Now, from what I can read from this is that they would run separately and independently for two to three years. They then go on to say in the other FAQ that "until regulatory approval" there will be no customer benefits offered. Is the bottom line here that it will be until fall 2007 or 2008 I can start redeeming HP miles on US, vice versa, and enjoy a new FF elite program? If that's the case, I'm not sure who is going to wait around that long for something better to come along. Or am I off?
Sorry, enviroian, but I'm happy to say that you're "off."

The integration of operations (think planes, routes & personnel) is expected to take two to three years because there are a number of sticky issues to be resolved. Parker said that neither airline's current FAA operating certificate would allow for absorbtion of the other and that it will take some time before all of that can be ironed out. Perhaps the biggest issue is how the unions of the two airlines will integrate workforces. This is of particular concern because, on average, the US employees have many more years of service than the HP employees because US has been around for so much longer. I've read that in flight attendent ranks, for example, if seniority in the new airline were to be determined solely by years of service (the current method for each union) all HP FA's would be terminated and replaced by current and furloed US FA's. That's obviously unacceptable. The unions have some serious work to do to iron all of this out. It is issues like these that will be sorted out over a two to three year time span.

Parker said that frequent flyer (and elite) programs, scheduling, ticketing -- all the things we, as passengers care most about -- will be consolidated as quickly as possible, once regulatory approvals are secured and the "financial" merger is complete. The tentative date for that is the end of October. That means that we'll have the same frequent flyer benefits in the new consolidated airline, schedules will be better aligned for connections and we'll be able to buy tickets that incorporate segments from both the current airlines. Both US and HP operations will operate as a single front to customers as the new US Airways. For all intents and purposes, the separate operating certificates and their eventual combination is intended to be transparent to customers.

So don't worry enviroian, if all stays on course you should have access to US (and hopefully Star Alliance) flights and award inventory before the end of the year.

Personally, if these guys are smart, and I believe that they are, now that they know there are no competitive threats to their deal (that possibily ended July 1), they should make some preliminary announcements regarding some of their intentions with the new, consolidated frequent flyer program. For example, if they were to say, "Once the merger is completed in the fourth quarter and the two frequent flyer programs are combined, we will consolidate miles from both programs into a single one and all elite-qualifying-miles earned in each program will be combined for your EQM total for the year," think of the potential revenue impact. HP loyalists who need another airline in the east would choose US if possible. Same with US loyalists who need coverage in the west. They could at least be giving passengers reason to support both airlines while they're working through their consolidation plans.
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Old Jul 13, 2005, 5:35 pm
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Originally Posted by AZ Travels the World
Sorry, enviroian, but I'm happy to say that you're "off."

The integration of operations (think planes, routes & personnel) is expected to take two to three years because there are a number of sticky issues to be resolved. Parker said that neither airline's current FAA operating certificate would allow for absorbtion of the other and that it will take some time before all of that can be ironed out. Perhaps the biggest issue is how the unions of the two airlines will integrate workforces. This is of particular concern because, on average, the US employees have many more years of service than the HP employees because US has been around for so much longer. I've read that in flight attendent ranks, for example, if seniority in the new airline were to be determined solely by years of service (the current method for each union) all HP FA's would be terminated and replaced by current and furloed US FA's. That's obviously unacceptable. The unions have some serious work to do to iron all of this out. It is issues like these that will be sorted out over a two to three year time span.

Parker said that frequent flyer (and elite) programs, scheduling, ticketing -- all the things we, as passengers care most about -- will be consolidated as quickly as possible, once regulatory approvals are secured and the "financial" merger is complete. The tentative date for that is the end of October. That means that we'll have the same frequent flyer benefits in the new consolidated airline, schedules will be better aligned for connections and we'll be able to buy tickets that incorporate segments from both the current airlines. Both US and HP operations will operate as a single front to customers as the new US Airways. For all intents and purposes, the separate operating certificates and their eventual combination is intended to be transparent to customers.

So don't worry enviroian, if all stays on course you should have access to US (and hopefully Star Alliance) flights and award inventory before the end of the year.

Personally, if these guys are smart, and I believe that they are, now that they know there are no competitive threats to their deal (that possibily ended July 1), they should make some preliminary announcements regarding some of their intentions with the new, consolidated frequent flyer program. For example, if they were to say, "Once the merger is completed in the fourth quarter and the two frequent flyer programs are combined, we will consolidate miles from both programs into a single one and all elite-qualifying-miles earned in each program will be combined for your EQM total for the year," think of the potential revenue impact. HP loyalists who need another airline in the east would choose US if possible. Same with US loyalists who need coverage in the west. They could at least be giving passengers reason to support both airlines while they're working through their consolidation plans.
Thanks AZ for a well written and informative answer. Yes, it appears I'm way "off"!

I'd like to see an announcment too regarding proposed changes. I'm dying to know that under a new FF elite program will upgrades for Plats be given at 7 days out. Also, will 100K EQM or 75K EQM be the threshold to meet for Platinum status under a new program. Should be interesting. For me the biggest benefit would be redeeming 80K miles for envoy to see my family in the UK three times a year. Of course I'm sure it pales in comparison to BA's CW, but for 80K year round (with capacity controls) it's pretty good value, and the best part is that it gets me into Gatwick ^
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Old Jul 13, 2005, 5:57 pm
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Combination of Workforces

Thanks AZTravels ....
I seriously hope that US/HP find a method to combine pilots, flght attndents that keeps a good portion of HP's staff. I find that because of that length of service, US's customer point of contact employees are generally surly and lack empathy. The economics doesn't support going exclusively on seniority either -- isn't US in bankruptcy partly because of their workforce expense?
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Old Jul 14, 2005, 1:39 am
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Thanks for the well written response.

I would love to hear your thoughts on what I should do over the next few months.

I am currently a Plat with HP. I have some flights this fall that I would love to use US for, to complement what I have with HP. For example, I know I have a trip to Erie, PA set. I would be happy to fly to PHL with HP and then onto Erie with US. If I knew I would get miles with HP (or the combined airline) or with US (once again, or the combined airline) I would be willing to fly the whole way instead of flying part way and driving part way.

Some my travel will be before the October time frame. If I was to open a US account and fly some segments on them, that then might combine with my HP miles later in the new FF program?

Anyone with HP willing to give any details? How about pushing management to tell us something?!

I agree with the poster who said it would be a great way to increase revenues. I, for one, would take a few other trips if I knew that my HP and US miles would be combined for elite status and miles in my account.

Jennifer

PS I actually don't know that US is the correct initials for US Airways. Am I correct or out in left field? Guess I need to learn this!
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Old Jul 14, 2005, 3:18 am
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Originally Posted by JenniferNAz
I actually don't know that US is the correct initials for US Airways. Am I correct or out in left field?
US is indeed the identifier for USAirways. Formerly known as PI for Piedmont, PS for PSA, AL for Alegheny, and a few others that go way back. I suppose HP and "Cactus" will go into the history books.
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