US Airways has finalised its contract with Airbus Industrie to acquire up to 400 aircraft following the successful negotiation with the US Air Line Pilots Association of a new five-year contract which goes into effect on 1 January. The airline is now turning its attention to contract negotiations with other unions, and working towards the launch of its low-cost operation, called US2.

The airline has signed a firm contract for 124 CFM International CFM56-powered Airbus A320 family models (four more than previously announced), plus 276 reconfirmable orders and options. The first six A319s are due for delivery in the fourth quarter of 1998, and 15 more in 1999, along with five A320s.

Deliveries will increase substantially in 2000. US Airways says that it will begin discussions for buying an undisclosed number of Boeing 777s or Airbus A330s for transatlantic operations.

Meanwhile, the airline continues to work towards the launch of US2, which will compete with Delta Express and Southwest Airlines. US2 will "provide us with an unprecedented opportunity to respond to the low-fare demands of the marketplace", says US Airways president Rakesh Gangwal.

It has been disclosed that Baltimore-Washington International (BWI) Airport, which recently saw a cutback in US Airways flights, will serve as a hub for the new operation. Gangwal says: "BWI will play a major role in the launch of the low-cost operation, which is expected early in 1998. This is the single most important thing US Airways can do to protect and enhance our franchise. We will move with speed and diligence to put this competitive response in place."

Source: Flight International