US Airways and Lufthansa reach code-share agreement

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US Airways and Lufthansa reach code-share agreement

WASHINGTON (Reuters) =97 US Airways and German airline Lufthansa reached a=
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code-sharing agreement Thursday that would give the American carrier a new=
=20
business foothold just weeks after emerging from bankruptcy. It was the=20
second big development from US Airways on its post-bankruptcy business=20
plans this week. On Monday, the company announced a $4.3 billion order for=
=20
regional jets with Montreal-based Bombardier and Brazil's Embraer.=20
Executives from the two airlines told reporters that the proposed alliance,=
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scheduled to start in the fall pending regulatory approval, could yield=20
both companies an estimated $50 million annually. David Siegel, US Airways=
=20
president and chief executive, said the agreement will complement its=20
domestic code-share with bankrupt United Airlines and hoped it would=20
presageacceptance into the Star Alliance. Juergen Weber, Lufthansa's=20
chairman and chief executive, said he supported US Airways' application for=
=20
inclusion in Star, which the German carrier leads with United. A decision=20
on that bid could come in the coming weeks, Siegel said. Regardless of what=
=20
happens with the Star Alliance, Siegel said US Airways and Lufthansa=20
planned to expand transatlantic ties down the road to include antitrust=20
immunity. US Airways is the nation's seventh-largest airline and offers=20
Lufthansa passengers access to its strong East Coast network. Lufthansa has=
=20
an extensive global network, offering service to nearly 90 countries. "We=20
have a very clear common vision of what we have to do in the next few=20
months," Weber said. Code-sharing allows airlines to sell tickets on each=20
others' flights and offers certain airport perks and reciprocal frequent=20
flier benefits.

Weber noted the US Airways hub in Philadelphia would be attractive to many=
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Lufthansa customers because of its proximity to the U.S. operations of=20
German companies like auto giant Daimler Chrysler AG, which has a plant in=
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Delaware. While Weber praised the possibilities for business at the=20
Philadelphia airport, he was harshly critical of operations at Dulles=20
international airport outside Washington. Weber complained some passengers=
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arriving from overseas had to wait up to three hours to clear customs on=20
Wednesday, calling it an unacceptable delay and "Medieval Age treatment."=20
He said it was the worst problem of its kind at any U.S. airport and he=20
planned to raise it at a meeting with senior Bush administration officials=
=20
next week. "I can tell you if the authorities here at this airport don't=20
react very fast business, and this means customers, will channel through=20
other hubs," Weber said. A Dulles spokeswoman said the airport was=20
beginning to see longer lines through customs and immigration processing=20
points as the peak international travel season picks up. Those services are=
=20
run by the federal government and a similar problem last year was resolved=
=20
with additional staff.


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