This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

US Airways: 'We'll Hit the Ground Running' After Merger

CHARLOTTE, N.C. (TheStreet) -- US Airways (LCC) President Scott Kirby said the carrier can "hit the ground running" after its merger with American (AAMRQ.PK) and reminded investors that is what happened following the 2005 merger of US Airways and America West.

Financially, "we came out screaming from day one" following the America West merger, Kirby recalled during an airline investor conference on Wednesday.

Asked whether the merger with American, which is expected to be in place in the third quarter, will face implementation problems, Kirby responded: "We know we won't be flawless but we think we'll do pretty well and we'll minimize the bumps in the road."

Kirby listed three reasons for optimism. First, the US Airways/America West merger provided valuable lessons, including "personal experience with things that went wrong -- It's a lot easy to learn from something going wrong than from things going perfectly," he said. Secondly, "We've had an example of an airline that's done pretty well, Delta (DAL) , and we've tried to shamelessly copy some of the things that they've done."

Thirdly, Kirby said, "We've got a process that's going extremely well," with teams from the two airlines working closely together. "We're going to get the code share up within weeks compared to what's taken much longer at some other mergers. I think we're going to hit the ground running and get the operational integration done effectively and with very minimal customer disruption."

The US Airways/America West merger closed on Sept. 27, 2005. In the fourth quarter of 2005, the combined carriers, reporting jointly for the first time, said that fourth quarter losses increased sharply due to surging fuel prices.

But in the first quarter of 2006, the carrier's improvement was stunning and shares rose more than 9% when results were announced on May 9, 2006. Excluding items, the carrier reported earnings of $5 million, or 5 cents a share. Analysts had expected a loss of 16 cents a share.

"Those guys deserve the accolades," Calyon Securities analyst Ray Neidl told The Associated Pressat the time. "Making a profit in the first quarter with $75 per barrel oil is quite a feat."

In late morning trading on Wednesday, US Airways shares were up 75 cents to $18.85. Delta shares were up 93 cents to $19.18 after President Ed Bastian told the investor conference that the current quarter "is shaping up to be a very strong quarter, possibly another record result." Delta reported a first-quarter profit for the first time since 2000.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,079.57 -42.44 -0.25%
S&P 500 1,996.74 -3.38 -0.17%
NASDAQ 4,557.6950 -11.9260 -0.26%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs