Why American Airlines & US Airways Merged (2024)

Summary

  • The merger between American Airlines and US Airways was finalized in 2013, leading to the disappearance of the US Airways brand in 2015.
  • US Airways had three main offices before relocating to American Airlines' headquarters in 2015 post-merger.
  • American Airlines is now the world's largest airline by passengers carried and fleet size, following the merger with US Airways.

More than ten years ago, American Airlines and US Airways announced their merger intentions, which would go on to create the world's largest airline.

While the holding companies of both carriers merged in December 2013, the Federal Aviation Administration (FAA) only granted a single operating certificate in April 2015, and the US branding officially disappeared by October of that year.

A brief history of US Airways

US Airways dates back to 1939, when All American Aviation was founded in Pittsburgh. Like American Airlines, it grew in the early years through its mail flights, serving the South and Midwest areas. The carrier's expansion snowballed thanks to several acquisitions, but it remained primarily a Northeast-focused operator.

Why American Airlines & US Airways Merged (1)

Photo:Eliyahu Yosef Parypa | Shutterstock

In 1997, the airline was rebranded as US Airways, but by the early 2000s, it encountered significant financial difficulties, as did many US airlines as a result of the 9/11 terrorist attacks.

US Airways' problems were exacerbated by a failed acquisition by United Airlines in 2004. This led to its merger with America West Airlines the following year, creating the country's fifth-largest airline and retaining the stronger US Airways brand.

The carrier also had multiple airline subsidiaries during its heyday, including MetroJet, US Airways Express, and US Airways Shuttle.

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Photo:Markus Mainka | Shutterstock

US Airways once held an extensive international and domestic network, serving up to 193 destinations in 24 countries across the Middle East, Europe, and North and South America. Between 2004 and 2014, the carrier was a member of the world's largest airline alliance, Star Alliance, before becoming an affiliate of oneworld in 2014 to align with American Airlines.

Read more:

The Story Of US Airways

The US Airways brand disappeared from the skies in 2015 - what were some key moments in the airline's 76-year history?

Merging the two airlines in 2013

Both American Airlines and US Airways struggled financially, and by 2013, neither airline was in a strong position; American Airlines filed for bankruptcy in 2011, while US Airways was still recovering from multiple earlier bankruptcies.

American Airlines considered multiple merger plans as part of an overall restructuring before signing a nondisclosure agreement with US Airways in 2012 to commence merger discussions.

The merger of US and AA was officially announced in February 2013, when the holding company of American Airlines (AMR Corporation) was to take a 72% share of the newly created company. In contrast, US Airways shareholders were set to take 28%. The decision was made to stick with the American Airlines brand and logo, and American Airlines Group Inc. began trading on the US stock exchange on December 9th of that year.

In August 2013, the US Department of Justice, alongside six states and the District of Colombia, decided to file a lawsuit looking to block the merger, stating that it would limit competition and overall result in higher airfares, which is when a stipulation was added to retain the US Airways branding until 2015.

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Photo: Ryken Papy | Shutterstock

During its tenure, US Airways had three head offices, which included Pittsburgh, Pennsylvania, between 1937 and 1960; Crystal City, Virginia, between 1960 and 2004; and finally, Tempe, Arizona, between 2005 and the airline's merger, where it then relocated to American's office in Fort Worth, Texas.

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It was not until October 2015 that the FAA awarded a single operating certificate to the new airline. On October 16th, the final US Airways flight, Flight US1939, made its way around legacy US Airways hubs.

The flight started in Philadelphia before heading to Charlotte, Phoenix, and San Francisco. The Airbus A321 then headed to Philadelphia, arriving just before 06:00 on October 17th. The entire US Airways mainline fleet livery makeover was completed in November 2016.

US Airways hubs and slogans

During its peak, US Airways operated up to 3,031 daily flights from its major hubs in Phoenix, Charlotte, and Philadelphia, with a large concentration in the East, South, and across the Caribbean. The most famous corner was Charlotte, with over 600 daily flights, followed by Philadelphia at around 400, and Phoenix and Washington Raegan, which both hit more than 220.

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Photo: jremes84 | Shutterstock

Throughout its history, the airline carried multiple slogans. These included:

1980s & 1990s

  • "USAir is Your Choice"
  • "Now our smile is even wider."
  • "USAir Begins With You"
  • "Fly the Flag With USAir"
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Photo:Markus Mainka | Shutterstock

2000s onwards

  • "Where I Fly the Flag"
  • "The Carrier of Choice" (after 9/11)
  • "Together We Fly"
  • "Clear Skies Ahead" US Airways
  • "Fly with US"
  • "The new American is arriving"

Objecting to the merger

While the merger had plenty of pros and cons, the two global airlines faced lawsuits looking to block the partnership, settling in 2013. This saw the retaining of the US Airways brand for several years and releasing slots at both Washington Raegan Airport (DCA) and LaGuardia Airport (LGA).

Other attempts to block the merger came from passengers and travel agents, who filed an antitrust lawsuit in 2013. They argued once again over the fear of increased ticket prices. The claim was rejected but went to appeal at the Supreme Court.

A leading global carrier

While senior management and trade unions drove the merger, many backed it as it meant fewer job losses versus solo strategies. Fast-forward to today, and American Airlines is the largest airline in the world in terms of passengers carried, transporting more than 200 million passengers annually. Many of those passengers will travel through one of the carrier's ten hubs, which include Los Angeles (LAX), Miami (MIA), Philadelphia (PHL), and Dallas (DFW).

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Photo: American Airlines

Data from ch-aviation shows that American Airlines' fleet currently consists of a staggering 1,003 aircraft, making it the world's largest airline by fleet size, just ahead of Delta Air Lines' 995 aircraft.

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American Airlines is the largest airline by fleet size, with over 1,000 aircraft.

What do you think of the US Airways - American Airlines merger? Did you fly regularly with US Airways prior to 2015? Share your thoughts and experiences by commenting below.

Why American Airlines & US Airways Merged (2024)
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