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US Airways Operations in Profile
From the beginnings as a mail carrier in 1939, to becoming part of the world’s largest airline in 2013, US Airways has spurned economic downturns, cut throat competition, and multiple bankruptcies, to survive and become the airline of today. With a hub and spoke system which allows for both the flexibilities of economies of scope and scale, a profile of the airlines history is profiled.
USAIRWAYS IN PROFILE 3
US Airways Operations in Profile
On December 9, 2013, and after timely and complex negotiations, the official merger of US Airways and American Airlines was officially completed. Upon full integration, the merger will have created the world’s largest airline, operated as American Airlines. The new combined companies will employee nearly 100,000 workers, service 6,700 daily system departures, to 330 destinations, throughout 50 countries in the world (American Airlines Newsroom, 2013). In shedding the US Airways brand name and operating as American Airlines, the passage will bring another chapter in the airline’s extensive and colorful history of growth, mergers, and name changes, creating the airline of today (figure1).
USAirways began in 1939 as All American Aviation, a product of the Air Mail Act of 1925, otherwise known as the Kelly Act. The act authorized awarding government mail contracts to private carriers via a bidding process. The company provided air mail service under such contracts to the Alleghany Mountain Region of Pennsylvania, West Virginia and Eastern Ohio (History of USAir, n.d.).
As the transportation of airmail became more reliable and aircraft designs allowed for the transport of both passengers and mail, the Airmail Act of 1930 was passed. The act realigned payment for pay...

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...he legacy carriers have the potential to create an oligopoly in aviation without controls. As 37 percent of the domestic market is held by discount
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US Airways Operations in Profile carriers, the new mega carrier’s network will create the ability to withstand future competition in the marketplace from new and existing low cost carriers like JetBlue and Southwest (Lifson, 2013). Additionally, these “mega carrier” consolidations will also provide a competitive response to the potential of international cabatoge negotiations currently undergoing within the Transatlantic Trade and Investment Partnership (TTIP). Cabotage provides the ability for a foreign carrier to operate domestic routes outside their own country (Yglesias, n.d.), which is not currently allowed by trade law. If approved, the stage will be set for competition of global proportions.

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