NYTimes.com Article: Lufthansa, US Airways OK Code - Share Deal

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Lufthansa, US Airways OK Code - Share Deal

May 15, 2003
By THE ASSOCIATED PRESS






Filed at 1:01 p.m. ET

FRANKFURT, Germany (AP) -- Lufthansa said Thursday it has
signed a code-sharing agreement with US Airways, a move
that could serve as another step toward the American
carrier joining the 14-member Star Alliance.

The airlines expect the code-share agreement, which allows
them to sell tickets on each other's flights, to begin in
the fall. Travelers on both airlines will also eventually
have access to both companies' promotions, customer
services and frequent flier programs.

``We are looking forward to working with US Airways to
improve the travel options of our costumers,'' Lufthansa
chief Juergen Weber said in a statement.

``US Airways has stated its interest in joining the Star
Alliance,'' which links 729 cities in 124 countries among
14 airlines, Weber added. ``We would be glad to support the
membership in the alliance of our new partner.''

For US Airways, the partnership gives its customers access
to the German carrier's extensive global network, which
serves 340 destinations in 90 countries.

Lufthansa's presence in Europe, Africa and the Middle East,
and US Airways' strength in the eastern United States and
the Caribbean will complement each other, said US Airways
spokeswoman Amy Kudwa.

The Lufthansa statement did not refer to the troubles of
United Airlines, currently its only U.S. partner in the
Star Alliance. United, which filed for bankruptcy late last
year, provides flights to other U.S. destinations from
cities such as New York, Chicago and Washington, D.C.

US Airways, based in Arlington, Va., is the largest carrier
on the eastern seaboard of the United States and the
seventh largest in the nation. Its operations are
concentrated in its hubs in Charlotte, Pittsburgh and
Philadelphia. All three hubs offer once-a-day service to
Frankfurt, and Philadelphia also has once-a-day service to
Munich. From there, US Airways customers could gain easy
access to Lufthansa's network, Kudwa said.

``This new alliance with Lufthansa comes at a very exciting
time for US Airways, as we begin implementing the business
goals we set forth during our restructuring,'' US Airways
president David Siegel said.

US Airways recently reported a profit of $1.63 billion in
the first quarter of 2003, helped by a $1 billion
government-backed loan it received when it emerged from
bankruptcy on March 31. The one-time items associated with
US Airways' emergence from bankruptcy helped mask an
operating loss of $282 million.

http://www.nytimes.com/aponline/business/AP-Lufthansa-US-Airways.html?ex=1054026034&ei=1&en=11c418a59c36e54b


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