US Airways began, in the mid 1930s, calling itself All American Aviation. It began service as an airmail carrier, supplying service to many small western Pennsylvania and Ohio Valley communities. Then, in 1949 All American Aviation changed its name to All American Airways; with the change of name the airline also changed direction in terms of the service it offered. The airline is able to focus on passenger service with the introduction of the DC-3. The airlines’ route system continues to grow, and in 1953 it changes its name again, this time to Allegheny Airlines.
In 1965, Allegheny Airlines began purchasing the turbine-powered Convair 580. One year later, the airline decided to purchase a DC9-10, and was replaced in 1967 by a DC9-30, which would eventually go on to form most of Allegheny’s fleet. That same year, Allegheny began commuter service Hagerstown, MD and Baltimore/Washington International Airport, which was run by Henson Aviation, forerunner of Piedmont Airlines. The introduction of this commuter service, and the use of regional airlines like Henson was just the beginning; today US Airways’ network includes 10 regional airlines that provide US Airways Express service to 172 cities throughout the nation (http://www.usairways.com).
Although retaining its name, in 1968 Allegheny merged with Lake Central Airlines. This merger allowed the airline to expand its route network further, from Pittsburgh, to encompass the Dayton, Columbus, Cincinnati, Indianapolis, and St. Louis. A few years later, in 1972, Allegheny acquired Mohawk Airlines. Mohawk airline served cities throughout New York and New England. Furthermore, with this merger, in addition to the added route network expansion, Allegheny also acquired Mohawk's BAC-1-11 jets. With these additions, Allegheny becomes the sixth largest airline in the world in terms of passenger boarding’s (http://www.usairways.com).
In 1978, arguably one of the largest events in the airline industry takes place, with the deregulation of the industry. With this, airlines have the freedom to expand route systems, and they also have the flexibility to develop new pricing structures; unfortunately, the industry also looses the protection of the Civil Aeronautics Board. Just like that a new industry is born.
2.0: Post-Deregulation through 1996
With the ushering in of a new industry via deregulation, Allegheny decided to yet again change its name, and in 1979 it became USAir. The company did so in order to express its ever expanding route network, which by post deregulation stretched to include: Arizona, Texas, Colorado, and Florida. A few years later, in 1984 USAir followed suit of other airlines and introduced its frequent traveler program, providing travel benefits to USAir's most loyal customers (http://www.usairways.com).
Piedmont Airlines, which began in 1948 and was the dominant carrier throughout the mid-Atlantic region of the United States, acquired Empire Airlines in 1986. This was important because one year later Piedmont became the newest subsidiary of USAir. Also in 1987, Pacific Southwest Airlines, based in San Diego, became a wholly owned subsidiary of USAir Group. Also in 1987, Piedmont introduced European routes into its system (http://www.usairways.com).
The merging continued in 1988, with PSA becoming part of USAir. The following year, in 1989, Piedmont is fully integrated into USAir, which was, at the time, the largest merger in airline history. With the merger, USAir acquires Piedmont's international routes as well as its Charlotte, Baltimore, Dayton and Syracuse hubs. USAir’s fleet further expands with this acquisition because it “brings USAir's first wide body jets, the Boeing 767-200ERs now used on its transatlantic and some transcontinental routes” (http://www.usairways.com).
USAir expanded its international flying in 1990, with service between...
References: Barry, J.M. (1994). The crash of USAir Flight 1016: Emergency preparedness. Journal of Environmental Health, 57, 8.
Benoit, W.L. & Czerwinski (1997). A critical analysis of USAir 's image repair discourse Business Communication Quarterly, 60, 38-58.
Corn, J.J. (1990). Reviews of Books: The Airway to Everywhere. The American Historical Review, 95, 607-608.
Dooley, F.J. (1994). Deja vu for airline industrial relations. Journal of Labor Research, 15, 169-192.
Dorr, R. F. (1994). Aircraft, airlines, and air traffic control. Aerospace America, 32, 16.
Dorr, R. F. (1996). Washington watch: USAir flying solo? Aerospace America, New York: 34, 9.
Lee, J. Chen, L., & Shaw, S.L. (1994). A method for the exploratory analysis of airline networks. Professional Geographer, 46, 468-484.
Morrison, S. (1996). Airline mergers: A longer view. A. Journal of Transport Economics and Policy, 30, 237-251.
Park, J. H., Park, M.K., & Zhang, A. (2003). The impact of international alliances on rival firm value: A study of the British Airways/USAir Alliance. Transportation Research. Part E, Logistics & Transportation Review, 39E, 1-12.
Park, J. H., & Zhang, A. (2000). An Empirical Analysis of Global Airline Alliances: Cases in North Atlantic Markets. Review of Industrial Organization, 16, 367-383.
Prokesch, S. E. (1995). Competing on customer service: An interview with British Airways ' Sir Colin Marshall. Harvard Business Review, 73, 100-113.
Please join StudyMode to read the full document