Though uncertainties remain, the planned merger of American Airlines and
Tempe-based US Airways isn't expected to immediately affect air service at
Tucson International Airport.
US Airways and American say that after their planned merger, the combined
airline "expects to maintain all hubs and service to all destinations."
And while that doesn't necessarily mean the merged airline won't cut the
number of flights to certain destinations, the two airlines don't currently
fly the same routes from Tucson.
US Airways operates 10 daily nonstop flights from Tucson, all to Phoenix
Sky Harbor Airport. American offers two daily nonstops to Chicago O'Hare,
seven to its hub at Dallas-Fort Worth and four to Los Angeles, according to
TIA.
That lack of overlap also is reflected nationally, and in particular,
regionally, said Robert Mittelstaedt, professor and dean of the W.P. Carey
School of Business at Arizona State University.
"This merger is a little unusual in the history of these mergers, in that
American and US Airways don't overlap on a lot of routes," said Mittelstaedt,
a longtime commercial-rated pilot and frequent flier who has followed the
industry for years.
The $11 billion merger, announced Thursday, will turn American into the
world's biggest airline, with 6,700 daily flights and annual revenue of
roughly $40 billion. The combined carrier will be called American Airlines and
will be based in Fort Worth. The deal is expected to close by the end of
September, as part of American's emergence from Chapter 11 protection.
Amy Moreno, travel director for AAA Arizona, said though the merger is
good in that it preserves American, the further industry consolidation could
have some detrimental effects on consumers.
The merger will leave four big carriers in control of 90 percent or more
of domestic traffic, she said.
"Less competition could lead to higher fares, and we don't know which
routes are going to be impacted, if any," said Moreno, adding that consumers
are likely to see any changes unveiled over the coming months, rather than
immediately.
Smaller-market airports like TIA may come out relatively unscathed if
existing flights are well-supported, she said.
"I would say the areas that have consistent flights out of smaller
airports that are successful now are most likely to stay in place. The ones
where there's overlap in larger cities, like Phoenix, are probably the ones
they would be looking at modifying," Moreno said.
Because of the uncertainty surrounding policy changes after the merger,
Moreno recommends that people consider cashing in their current frequent-flier
miles.
American has a relatively small presence at Sky Harbor, a major US
Airways hub, so flight changes there may be minimal, ASU's Mittelstaedt noted.
In Phoenix, 300 US Airways flights a day use 50 gates at the airport's
largest terminal. American has a tiny presence by comparison, with just 20
departures a day using three gates in the smaller Terminal 3. Those operations
will most likely move to the US Airways area of Terminal 4 when the merger is
complete, airport spokeswoman Deborah Ostreicher said.
"Phoenix will be the primary Western intercity hub, Los Angeles the
primary international hub," Doug Parker, who will be the combined airlines'
CEO, said Thursday. He said he expects the Phoenix hub presence to be stable
or even grow as the airlines consolidate.
That sounds plausible to ASU's Mittelstaedt, who said he doubts the
combined airline would move an entrenched hub like Phoenix to a place like Los
Angeles International Airport -- site of American's only hub in the West --
noting that many frequent fliers to Southern California prefer flying directly
to their destinations rather than fighting traffic to fly out of LAX.
US Airways has about 9,000 employees in Arizona, most at Sky Harbor.
Between 600 to 750 work at the company's headquarters in nearby Tempe, and
some of those are expected to go to Texas once the merger is complete, with
Parker leading the way.
But John McDonald, the company's vice president for corporate
communications, said US Airways just signed a new five-year lease with a
five-year option on its headquarters building and expects to keep hundreds of
people working there.
Any job losses due to the merger are expected to be mainly in management,
Parker said.
The merger doesn't stand to have much effect on Tucson-area employment.
Last year, American closed a customer-service call center in Tucson that
employed more than 700 workers.
This report includes information from The Associated Press.
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News Column
Tucson Likely to Keep Current Flights After US Airways-American Merger
Feb. 15, 2013
David Wichner
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Source: (c)2013 The Arizona Daily Star (Tucson, Ariz.) Distributed by MCT Information Services
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