US Airways' Rehiring Spree

It's not just shareholders who have benefited from the US Airways(LCC) merger.

Last year's combination of US Airways and America West Airlines is also creating jobs at the airline, including 600 reservations jobs that had been outsourced abroad.

The return of reservations jobs from San Salvador, Mexico City and Manila to Phoenix, Reno, Nev., and Winston-Salem, N.C. -- including 200 jobs that have already been restored -- represents a reversal of the widespread trend to outsource customer service jobs to other countries.

"Our reservations team does a much better job than those the work has been outsourced to," said US Airways CEO Doug Parker, in an interview with TheStreet.com. "Despite our efforts to improve the outsourcing, it will never be as good as having our own employees do it."

Parker also said that the expectation of further consolidation in the airline industry may be overblown, simply speculation resulting from the bankruptcies of Delta Air Lines (DALRQ) and Northwest Airlines(NWACQ). "Both of these companies are going through their bankruptcies, finding themselves coming in ahead of their plan and probably have standalone plans for emerging," he said. "If they do come out independent, you won't hear much about consolidation anymore."

The reservations jobs were outsourced last year by the former US Airways, which was operating under bankruptcy court protection, strapped for cash and struggling to reduce labor costs. Parker, who had headed America West Airlines, took over management of the combined airline when the merger was completed in September. He regularly heard complaints, from customers and employees, about the quality of the outsourced service.

"When the pay scales were so divergent, I wasn't here, but I guess the analysis said, 'It's going to be a little worse service, but so much (less) money,' " Parker said. "Now we look at it and say, "It's going to be a little more money but much better service."