| Journal: TWUK | Section: |
| Title: | Issue Date: 29/05/00 |
| Author: | Page Number: 2 |
| Copyright: Other |
United Airlines deal puts pressure on BA
BRITISHAirways faces inc-reased competition in the cut-throat transatlantic market following a $11.6bn deal for United Airlines to buy USAirways.The UKcarrier blamed overcapacity on UK-USroutes for its poor annual result last week but the merger between United and US Airways will pile more pressure on BA.
US Airways will be brought into the United-founded Star Alliance, which includes British Midland, to further strengthen the partnership in its on-going battle with BA’s Oneworld.
USAirways country manager UK and Ireland John O’Toole said it would be “business as usual” for US Airways and United in the UK while merger details are sorted out.
United flies from Heathrow to a range of US cities, while USAirways serves Philadelphia and Charlotte from Gatwick. Last week, US Airways started daily flights from Manchester to Philadelphia and will launch a Pittsburgh flight from Gatwick in July.
Joint operations will cover agent agreements, meaning US Airways retailers will be paid a 7% base commission in the future instead of 9%.