United, US Airways Announce Codeshare Specifics
Domestic alliance partners United Airlines and US Airways, both in the midst of bankruptcy reorganization and hungry for revenue benefits from their partnership, on Jan. 7 will begin initial codesharing. United customers already can book certain US Airways segments through global distribution systems. United segments become available to US Airways customers tomorrow.
Nearly 200 daily flights will be covered by this first batch of codesharing, including US Airways services from its Charlotte hub to various cities, including Columbus, Ohio; Hartford, Conn.; Indianapolis; Miami; Providence, R.I.; Raleigh/Durham, N.C.; Richmond, Va.; Reagan Washington National Airport and certain flights to the Caribbean. United's contribution to the codeshare arrangement includes flights between its Chicago O'Hare hub and Oakland; Orange County, Calif.; Phoenix; Portland, Ore.; Salt Lake City; Sacramento; San Diego; San Jose and Seattle.
The two carriers said additional codeshare services will be announced throughout 2003. The partners already linked frequent flyer programs and airport clubs and activated electronic ticket interlining.
But the alliance may be too little and too late, depending on how quickly each carrier progresses through bankruptcy proceedings.
The Master Executive Council of the US Airways Air Line Pilots Association over the weekend ratified a new cost-cutting agreement that saves the carrier another $100 million annually. It needs to cut roughly another $100 million to hang on to financing available through the Retirement Systems Of Alabama, US Airways' equity sponsor during reorganization. Though US Airways has been given until Jan. 31, 2003, to file its own plan for bankruptcy reorganization, the company intends to do so before the end of the year in order to finalize a federal loan guarantee conditionally granted by the Air Transportation Stabilization Board.
Meanwhile, United continues to negotiate concessions with its labor unions in order to square away financing during its Chapter 11 reorganization.