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The U.S. Justice Department has given its approval to the merger of American Airlines and US Airways, the last major hurdle for a deal that will create the largest airline in the world.

The two companies communicated that customers with existing tickets are unlikely to see any noticeable changes, but longer term, the effects could be significant. Owners of frequent-flyer miles for both airlines will remain valid until both programs are consolidated on an equal value basis.

The two carriers are the last to link up in the latest wave of U.S. consolidation, which includes:

• Delta and Northwest
• United and Continental
• Southwest and AirTran

US Airways launched an aggressive takeover bid for its larger rival American Airlines on Friday.

The bold move would lift troubled American out of bankruptcy and create a contender for the title of the largest airline in the U.S.

But the deal – which is resisted by American’s management – could also complicate the company’s already messy bankruptcy reorganisation.

US Airways went behind the larger company’s back and secured the support of American’s three labour unions in its bid to force a merger.

source: Dailymail.co.uk

For US Airways, the merger-hungry fifth-largest U.S. airline, a bankrupt American Airlines may present an irresistible takeover target, but many in the aviation world think the headaches and hassles of consolidation are not worth the payoff of such a tie-up.

American Airlines, a unit of AMR Corp, filed for Chapter 11 bankruptcy protection on Tuesday in a bid to shed some of its uncompetitive costs and restructure its debt.

Bankruptcy leaves the company vulnerable to potential takeover attempts from would-be suitors like US Airways, whose chief executive Doug Parker has long promoted consolidation as a means to slim down an industry plagued by overcapacity. US Airways once tried and failed to buy Delta Air Lines as it restructured in bankruptcy.

source: Reuters

US Airways has revealed plans to offer in-flight Wi-Fi across its entire domestic fleet “‘within the next couple of years'”, and said it is likely to announce its choice of provider – either Gogo or Row 44 – before the end of 2011.

For about a year-and-a-half the carrier has offered Gogo’s domestic air-to-ground (ATG)-supported connectivity service on its 51-strong Airbus A321 fleet. It recently confirmed its intent to fit new-delivery Airbus narrowbodies with Gogo.

source: flightglobal.com

US Airways, United, Continental and Delta confirmed that they raised prices.

Jamie Baker, an analyst for J.P. Morgan Chase, said the increases of $6 to $10 were applied to last-minute tickets favored by corporate travelers. He said the move, led by US Airways, appeared to back up the company’s comments that demand for business travel has held up.

Baker said the airlines did not increase prices on tickets requiring an advance purchase. Those are usually bought by leisure travelers.

source: msnbc.com

The story about the football player who was booted off a US Airways flight for his saggy pants is getting a second wind.

That’s thanks to a follow-up story by the ‘San Francisco Chronicle’ that says six days before the saggy-pants drama, “‘a man who was wearing little but women’s undergarments was allowed to fly the airline, a US Airways spokeswoman conceded Tuesday.'”

A spokeswoman for the airline, Valerie Wunder, said the staff were correct to not ask the man to cover up because the airline did not have a dress code.

source: USA Today

US Airways landed at the bottom of the list for overall satisfaction, also receiving the lowest marks for cabin-crew service. The airline was also ranked lowest in 2007, when the last Consumer Reports airline rankings were released.

Southwest Airlines topped the rankings for overall satisfaction, with JetBlue Airways coming in second in the survey of nearly 15,000 passengers.

The pileup of added fees during or after check-in is contributing to many travelers’ decisions to fly less, according to the survey. Of the respondents who said they’ve cut back on flying, 40 percent cited fees as the major reason.

US Airways Group Inc. filed an antitrust suit against Sabre Holdings, a global airfare distributor that acts as a middleman between airlines and travel agents.

According to the complaint, Sabre threatened to bar US Airways’ access to its distribution channel if the airline didn’t agree in a new contract to exclusionary restrictions that would protect Sabre from competition.

The new contract was signed in February after US Airways was “‘forced to acquiesce,’” the filing said.

Sabre “‘imposes significant economic penalties’” on travel agents if they try to book tickets outside its channel, the airline said.

source: marketwatch.com

US Airways Chief Executive Doug Parker said he wants the airline to be a strong stand-alone carrier but be ready to merge with another major carrier if the opportunity arises.

Speaking at a company media event, Parker, a long-time proponent of airline mergers, said consolidation has made the industry stronger.

source: Reuters

US Airways launched Gogo in-flight Wi-Fi service on five aircraft yesterday, joining eight other airlines working with wireless service provider Aircell.

US Airways plans to expand the Wi-Fi service from the initial five Airbus A321 aircraft to all 51 A321s by June 1.

Initially, US Airways will put a Wi-Fi symbol on the outside of a Gogo-equipped plane to alert passengers, along with displaying the symbol throughout the cabin. By late June, passengers will be able to tell whether Wi-Fi is available on a specific flight when booking travel online.

source: Computer World