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Old August 18th, 2004, 08:10   #52
flyover
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Join Date: Mar 2004
Location: Georgia
Posts: 3,389
Default Re: USAIR and Freq. Flyer

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I think the US Airways business model is just plain broken. This is a perfect example of what is wrong with corporate America these days. They took two perfectly good airlines and merged them together without thinking it through, just so that they could get bigger. And the merger created an airline with four hubs within an hours flight of each other and no west coast presence to speak of.

Not smart. Did not make sense. And now you're seeing the results of poor management decisions.

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They took three airlines and merged them. They also bought PSA to get a west coast presence. They couldn't make money out there, as many airlines have found. They shuttered the PSA operation in favor of the high-yield east coast. There big problems started when there was no longer any high yield markets.
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