US Airways is trapped in a "conundrum" created by the 18 months of uncertainty since it began planning to merge into United Airlines, US Airways president and chief executive, Rakesh Gangwal, said in explaining the carrier's $24 million loss in the second quarter, "normally our best quarter", he said.
Merger talks began early in 2000 and were formalised in May last year, and over that time, "we couldn't make any material changes to our business", Gangwal said. Meanwhile, "our competitors didn't stop moving", adding 244 more low-fare flights and 482 more regional jet flights in the US Airways home territory of the East Coast over the year.
US Airways losses now total $202 million so far this year, compared to $35 million in the first six months of 2000. Gangwal declined to outline the carrier's alternatives if the United merger is officially killed early next month adding only: "The status quo can't remain."
Source: Flight International
