US Airways Group
| Company type | Public |
|---|---|
| Industry | Airline holding company |
| Founded | 1939 |
| Fate | Merged with AMR Corporation to form American Airlines Group in 2013 |
| Headquarters | Tempe, Arizona , United States |
Area served | United States (47 states) and international locations |
Key people | Doug Parker (CEO) |
| Products | Air transportation services (US Airways, PSA Airlines, Piedmont Airlines) |
| Revenue | US$13.05 billion (2011) |
| US$426 million (2011) | |
| US$71 million (2011) | |
| Total assets | US$8.33 billion (2011) |
| Owner | ACE Aviation Holdings (6.1% ownership stake) |
Number of employees | 31,000+ (2011) |
US Airways Group Inc. functioned as an airline holding company based in Tempe, Arizona. It managed operations for US Airways along with its subsidiaries, PSA Airlines, Inc. and Piedmont Airlines, Inc., collectively branded as US Airways Express. In 2005, a merger took place between US Airways Group and America West Holdings Corporation, the parent company of America West Airlines, with the combined entity retaining the US Airways name; their operational certificates were unified in 2007. The group also oversaw associated service providers. Significantly, ACE Aviation Holdings, which owns Air Canada, held a 6.1% ownership interest in US Airways Group. The airline's network covered 47 states and numerous international locations.
In 2013, US Airways Group merged with AMR Corporation, resulting in the creation of American Airlines Group, which emerged as the largest airline globally by market share. This new corporation commenced trading under its updated name on December 9, 2013. Following the merger, US Airways CEO Doug Parker took on the role of CEO for American Airlines Group.
By the year 2011, US Airways Group had generated revenues near US$13.05 billion, with an operating profit of US$426 million and a net profit amounting to US$71 million. The workforce exceeded 31,000 employees, and total assets were valued at approximately US$8.33 billion, underscoring its influential status in the aviation sector and its strategic expansion prior to consolidation.
Origins and Rebranding
The airline that would become US Airways began as All American Aviation Inc., established in 1939 by the du Pont brothers, Richard C. du Pont and Alexis Felix du Pont, Jr.. Initially headquartered in Pittsburgh, Pennsylvania, it primarily served the Ohio River valley region. In 1949, following a shift from airmail services to passenger transport, it was renamed All American Airways before adopting the name Allegheny Airlines in 1953. Subsequent rebranding led to USAir in 1979 and ultimately US Airways in 1997.
Merger with America West
After experiencing financial difficulties due to decreased travel demand post-9/11, US Airways Group filed for Chapter 11 bankruptcy protection twice—initially in 2002 and again in 2004. The company exited bankruptcy in 2005 after securing a $125 million equity infusion connected to its merger with America West Holdings Corporation.
The May 2005 merger integrated US Airways’ routes across the Northeast, Europe, and Caribbean with America West’s dominant presence in the Western United States. The merged airline retained the US Airways brand identity, including its Dividend Miles frequent flyer program and membership in Star Alliance. Corporate headquarters were relocated to America West’s Tempe, Arizona facilities, with leadership from America West executives steering the combined company. The merger was officially completed on September 27, 2005.
In October 2006, US Airways expanded its corporate footprint by leasing additional office space adjacent to its Tempe headquarters.
Attempted Merger with Delta
On November 15, 2006, US Airways Group announced a proposal to acquire Delta Air Lines for $8 billion—half of which would be paid in cash and half via stock. Financing for the cash portion and refinancing of loans was arranged through Citibank. The plan was for the merged airline to operate under Delta’s brand name. However, on December 19, 2006, Delta’s Board rejected this offer; ultimate approval depended on creditors and a bankruptcy court ruling.
Delta employees, represented by the Delta Board Council and the Air Line Pilots Association, actively opposed what they termed a "hostile takeover" through their "Keep Delta My Delta" campaign. A rally attracting nearly 3,000 participants took place on December 13, 2006.
US Airways raised its bid to $10.2 billion on January 10, 2007, setting a February 1 deadline for consideration by Delta’s creditors committee. President Scott Kirby emphasized confirming their proposal as the best option available. Nevertheless, on January 31, 2007, after creditors endorsed Delta’s independent restructuring plan, US Airways withdrew its acquisition offer.
US Airways and American Airlines Merger
In January 2012, US Airways revealed its intention to acquire American Airlines, which was then operating under Chapter 11 bankruptcy protection. By July of the same year, US Airways acknowledged its position as both a creditor and a potential merger candidate with American Airlines. On August 31, 2012, Doug Parker, CEO of US Airways, confirmed the signing of a nondisclosure agreement to investigate the feasibility of a merger.
The official announcement of the merger between US Airways Group and AMR Corporation occurred on February 14, 2013, resulting in the formation of the world’s largest airline under the American Airlines brand. Leadership from US Airways, including CEO Doug Parker, retained significant operational responsibilities within the combined company. The headquarters for the newly merged airline were established at American’s base in Fort Worth, Texas.
Destinations
Refer to US Airways destinations for detailed information on routes operated by US Airways Group’s four airline subsidiaries as well as independent US Airways Express partners.
Airline Divisions
- US Airways, Inc., which includes US Airways Shuttle
- Piedmont Airlines, Inc., operating as US Airways Express
- PSA Airlines, Inc., also functioning as US Airways Express
Business Units Related to Airlines
- US Airways Express
- America West Holdings Corporation (previously known as Barbell Acquisition Corp.)
- America West Airlines, Inc., encompassing America West Vacations
- Material Services Company, Inc. – responsible for procurement for US Airways Express
- Airways Assurance Limited, LLC – an overseas insurance subsidiary
Equity Holdings
US Airways Group maintained a 10% ownership stake in Mesa Air Group.
Former Subsidiaries
- Allegheny Airlines, Inc., operating as US Airways Express, was merged into Piedmont Airlines on July 1, 2004
- US Airways Leasing and Sales, Inc. was consolidated into US Airways, Inc. on July 1, 2004
- US Airways Services Corporation, Inc. (formerly MidAtlantic Airways) merged into US Airways, Inc. on July 1, 2004
- Potomac Air, Inc., operating under US Airways Express branding, ceased operations in October 2001
- Shuttle, Inc., known as US Airways Shuttle, was merged into US Airways, Inc. on July 1, 2000