[airlinedivalish]

US Airways merger looking like takeover

Airline will be based in Arizona

TONY MECIA

Staff Writer

The combination of US Airways and America West -- officially described as a merger -- is looking more and more like a takeover.

The new company will be headquartered in Tempe, Ariz., home to America West.

The new CEO will be Doug Parker, CEO of America West.

And, the airlines said Monday, all but one of the merged company's top officers will be from -- you guessed it -- America West.

Including Parker, seven of eight top positions -- executive vice presidents of marketing and administration, the chief financial officer, general counsel, senior vice president of public affairs and vice president of corporate communications -- will be filled by America West executives. Only Al Crellin, 58, US Airways' executive vice president of operations, will continue with the combined company in the same role.

Airline analyst Mike Boyd said investors in the merged airline had hoped America West's management would reign. It makes sense, he says, because America West has been more financially successful than US Airways, which is in its second bankruptcy case since 2002.

The new company will need strong executive talent in "trying to breathe life into a cadaver," Boyd said.

The management team will make crucial decisions about the future of air service in Charlotte, which will be the airline's largest hub. About 5,300 of US Airways' 24,000 workers are based in Charlotte. The new airline will retain the US Airways name, and the two sides have started working on integrating operations.

The deal to combine the companies is expected to close by early October, following approvals from America West shareholders and US Airways' bankruptcy judge. A federal loan board signed off on the combination Friday, and antitrust regulators gave approval in June.

In a statement, US Airways confirmed some of its top leaders will not join the new airline.

"The executive team at US Airways has worked on this merger with one goal in mind, to preserve the franchise, save jobs and provide stability for the combined airline," the statement said. "... With the merger agreement near complete, for personal reasons, some of them will not be joining the new company."

A US Airways source, who asked not to be identified because the information was not publicly announced, said executives who expect to leave include Executive Vice President of Human Resources Jerry Glass, 51, who helped oversee recent labor negotiations; General Counsel Liz Lanier, who hired the company's bankruptcy lawyers; and Senior Vice President Chris Chiames, 46, who oversees the airline's communication strategy.

It is unclear whether US Airways Chief Financial Officer Ron Stanley, 58, will retire, even though the companies have named his America West counterpart as CFO in the new company, the source said.

US Airways CEO Bruce Lakefield will be vice chairman of the merged company's board but is not expected to have a day-to-day role. Another top US Airways leader, Executive Vice President of Marketing Bruce Ashby, said this month he's leaving to head a low-cost startup airline in India.

US Airways had asked a bankruptcy judge to approve severance agreements for executives, but the judge postponed a decision after labor groups objected.

America West spokesman Philip Gee said he knows of no top America West executives who will leave the company. Asked if the link-up is actually an America West takeover, Gee said: "It's not completely that way" because other executives are likely to come from US Airways' ranks.

Jose Gomez, the leader of the Charlotte chapter of US Airways' ticket agent union, said he welcomes the personnel moves because current US Airways leaders "have not demonstrated any kind of creativity in getting us out of the position we're in."

[airlinedivalish]

The new team.

[AA191]

This is great news and very encouraging to see the clear direction of the improved America West / USAirways once the merger is complete. Obviously change is not always comfortable but for the best interests of the employees and the customers, this flow chart really seems to make the most sense. Did everyone think that US was taking over HP? It is the success of HP's management that has made HP the way it is today.

[airlinedivalish]

How did they pick the team? Did they vote for that? Just wondering.

[N924PS]

AA191, on Jul 26 2005, 01:09 PM, said:

This is great news and very encouraging to see the clear direction of the improved America West / USAirways once the merger is complete.  Obviously change is not always comfortable but for the best interests of the employees and the customers, this flow chart really seems to make the most sense.  Did everyone think that US was taking over HP?  It is the success of HP's management that has made HP the way it is today.
<{POST_SNAPBACK}>

Can you please educate yourself on this merger? No one is "taking over."

Financing for this venture is being raised from a plethora of sources from Air Canada to Air Wisconson and many others.

Most USAirways employees would tell you having Al Crellin on the dance card does not bode well for the future.

Best wishes to the selected team members. Hopefully, they will be able to make the merged carrier a worthy competitor going forward, in spite of fuel prices.
They certainly have competitive labor costs and work rules, finally. The rest is up to them.

[firstamendment]

AA191, on Jul 26 2005, 07:09 PM, said:

  Did everyone think that US was taking over HP?  It is the success of HP's management that has made HP the way it is today.
<{POST_SNAPBACK}>

What is the motivation in starting this tired "discussion" over again? Nobody is taking over anybody. $563 million and 49% ownership of investments from various companies are funding the new US Airways.

Your statement has the potential of starting yet another pissing match. We at US Airways are 90% thrilled with the new leaders. Get rid of the only US VP selected and it would be 100%.

[ClueByFour]

firstamendment, on Jul 26 2005, 03:55 PM, said:

What is the motivation in starting this tired "discussion" over again? Nobody is taking over anybody. $563 million and 49% ownership of investments from various companies are funding the new US Airways.
<{POST_SNAPBACK}>

The HP equity has a greater share of the pie, however. And, in BK court documents, US itself admits it's an acquisition:

(see http://www.usaviatio...showtopic=20775, but I'll quote the relevent chunk):

Quote

Although the merger is structured such that America West will become a wholly owned subsidiary of US Airways Group at closing, America West will be treated as the acquiring company for accounting purposes under SFAS No. 141,“Business combinations,” due to the following factors: (1) America West’s stockholders are expected to own approximately 37% of New US Airways Group common stock outstanding immediately following the merger as compared to certain former US Airways Group creditors who will hold approximately 12% (these percentages
reflect certain assumptions concerning the likely exchange of certain convertible debt and the impact of certain securities that are dilutive at the per share purchase price paid by the equity investors); (2) America West will receive a larger number of designees to the Reorganized Debtors’ board of directors; and (3) America West’s current  Chairman and Chief Executive Officer will serve as Chairman and Chief Executive Officer of the Reorganized Debtors following the merger.

[smfav8r]

This is nothing new...

After the Value Jet crash in the swamp and lots of negative media...

Value Jet bought Airtran, kept all of the VJ management, repainted the aircraft and had a new and improved airline...

Same concept, but a little different...

At USAirways, no-one has been minding the store for give or take 15 years now...still in business with a large following of customers (almost cult-like) LOL.

HP has had an excellent "Turn-Around Team" and is moving foward, but has little name recognition on the East coast and Europe.

The powers that be (those with the money) think that the brand-name of U and the leadership/management skills of HP would make one Kick-A$$ airline.

Could work nicely....