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Once the industry's 'ugly girl,' US Airways now doing OK on its own
By Ben Mutzabaugh, USA TODAY
So much for US Airways being the "ugly girl" of the airline industry. At least that's the angle of a story in today's Wall Street Journal, where reporter Susan Carey notes it was just two months ago that Continental CEO Jeff Smisek -- speaking about his airline's proposed merger with United -- somewhat dismissively likened US Airways to being the "ugly girl" of the industry.
Many industry observers and Wall Street analysts seemed to share that opinion at the time, wondering out loud about US Airways' survival prospects if it could not find a merger partner.
FROM THE ARCHIVES: Continental CEO sorry for likening US Airways to 'ugly girl' (May 5, 2010)
Today, however, that thinking seems to have changed. Carey writes that since the "ugly girl" comment was made, "US Airways shares have rallied, and the carrier is expected to return to profit this year."
Carey adds that "for an airline that some investors and analysts pronounced in deep trouble two months ago, US Airways is displaying many signs of health. As the economic recovery lifts the industry's fortunes, US Airways stock has risen 79% this year, sharply outperforming its rivals."
The turnaround appears to be strong enough that US Airways has even backed away from its once-aggressive pursuit of a merger and now says it is just fine as a stand-alone carrier. While US Airways CEO Doug Parker acknowledges to the Journal that he wishes his attempt to merge United succeeded, he also thinks his airline has a bright future on its own.
And, perhaps disquieting some speculation about the carrier's future, Carey cites unnamed sources in saying US Airways is not currently pursuing a tie-up with AA. Additionally, Carey adds "nor is American's global marketing club, Oneworld, trying to lure US Airways into joining and vacating its perch in the rival Star Alliance, which also includes United and Continental."
Posted jul 2 2010 12:56PM
By Ben Mutzabaugh, USA TODAY
So much for US Airways being the "ugly girl" of the airline industry. At least that's the angle of a story in today's Wall Street Journal, where reporter Susan Carey notes it was just two months ago that Continental CEO Jeff Smisek -- speaking about his airline's proposed merger with United -- somewhat dismissively likened US Airways to being the "ugly girl" of the industry.
Many industry observers and Wall Street analysts seemed to share that opinion at the time, wondering out loud about US Airways' survival prospects if it could not find a merger partner.
FROM THE ARCHIVES: Continental CEO sorry for likening US Airways to 'ugly girl' (May 5, 2010)
Today, however, that thinking seems to have changed. Carey writes that since the "ugly girl" comment was made, "US Airways shares have rallied, and the carrier is expected to return to profit this year."
Carey adds that "for an airline that some investors and analysts pronounced in deep trouble two months ago, US Airways is displaying many signs of health. As the economic recovery lifts the industry's fortunes, US Airways stock has risen 79% this year, sharply outperforming its rivals."
The turnaround appears to be strong enough that US Airways has even backed away from its once-aggressive pursuit of a merger and now says it is just fine as a stand-alone carrier. While US Airways CEO Doug Parker acknowledges to the Journal that he wishes his attempt to merge United succeeded, he also thinks his airline has a bright future on its own.
And, perhaps disquieting some speculation about the carrier's future, Carey cites unnamed sources in saying US Airways is not currently pursuing a tie-up with AA. Additionally, Carey adds "nor is American's global marketing club, Oneworld, trying to lure US Airways into joining and vacating its perch in the rival Star Alliance, which also includes United and Continental."
Posted jul 2 2010 12:56PM
