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America West Airlines: Addition
built 627 days ago
America West was able to get $380 million in Federal Loan Guarantees after 9-11 and $110 million in cash. Recently, they have been in merger talks with struggling #10 carrier American Trans Air AAI which is competing at Chicago's Midway airport with Southwest, and it's something that America West knows how to do. In the future, America West is trying to emulate Southwest's inflight amenities (with the addition of tray-table advertising, which Southwest doesn't have), while flying to more exotic destinations such as Anchorage and San Jose, Costa Rica. The success of this strategy is up for debate, as other carriers such as Alaska, Frontier, and Spirit are trying to jump on the Mexico and Latin America bandwagons too.
As part of its new eastern focus, America West ... sold off its recently acquired route to Nagoya, Japan, adding $15 million of cash to the airline's coffers. Passenger bookings were up, as the airline aggressively courted travel agents to regain their lost confidence. In addition, the company's costs had sunk to the lowest levels in the industry as America West prepared to submit a plan for reorganization to its bankruptcy court in 1992. While Conway told Business Week that 'this airline is too tough to die,' industry observers predicted that America West's fate hung with the rest of the economy: a robust economic upswing could save it, while continued recession would almost certainly doom it.
Additionally, the agreement covering pilots at the former America West, which merged with US Airways reopens in June. Both pilots and management say they are seeking a single contract to cover both pilot groups.
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