US Airways to Leave Star Alliance, Join Oneworld By Start of 2014

By Paul Riegler on 26 July 2013
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A US Airways jet in Seattle

A US Airways jet in Seattle

In the course of its second-quarter earnings call, US Airways said that it will leave Star Alliance and have joined the oneworld alliance by 2014.

“We plan to be fully transitioned to oneworld by the beginning of next year,” said J. Scott Kirby, the airline’s president.

US Airways and American Airlines are proceeding with their merger on schedule, and American plans to emerge from bankruptcy protection as the deal closes in the third quarter.  The combined entity, which will operate as American Airlines, will be the world’s largest airline in terms of passenger traffic, eclipsing United Airlines and Delta Air Lines, the current and former holders of that title.

US Airways’ chief financial officer, Derek Kerr, said that its current actions “have worked exceedingly well” and will result “in a solid foundation to build upon” when it comes to integrating with American.

The new American Airlines will be based in Fort Worth where American is currently headquartered. It will have 94,000 employees, 950 planes, 6,500 daily flights, eight major hubs, and revenue of roughly $39 billion. It will be the leader in several markets including the East Coast, the Southwest, and South America, although it will continue to be overshadowed by Delta and United in Europe and Asia.

Responding to a question at the end of the call, Kirby was nothing if not optimistic about the airline industry: “Air travel continues to be a great bargain for consumers” he said in the course of the earnings call, and there has been a substantial increase in the sale of Envoy business-class fares as well.

(Photo: Accura Media Group)

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