NYTimes.com Article: US Airways Joins Star Alliance

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US Airways Joins Star Alliance

June 2, 2003
By BLOOMBERG NEWS






The US Airways Group received approval on Saturday to join
the Star Alliance, the world's largest partnership of
airlines, a move the airline said would give it an
additional $75 million in annual revenue.

The addition of US Airways will expand business travel
options offered by the alliance along the East Coast and
leisure offerings to Florida and the Caribbean, said Glenn
F. Tilton, the chief executive of United Airlines, an
alliance member. Executives from the alliance's 16 airlines
voted unanimously to add US Airways.

"This new partnership is a wonderful strategic fit," Mr.
Tilton said at a news conference in Washington. Airlines in
the alliance save money through steps like sharing computer
programs, airport lounges and ground services.

US Airways will join the alliance in six to nine months
after completing computer upgrades and other changes, said
David N. Siegel, the chief executive of US Airways.

Along with United and US Airways, other Star members
include Lufthansa, Singapore Airlines, All Nippon Airways
and Air Canada.

After the news conference, Mr. Tilton said United's parent,
the UAL Corporation, was revising its application for a
$1.8 billion government loan guarantee in an effort to
emerge from bankruptcy protection.

"We're actively supplementing the application," Mr. Tilton
told reporters. "We are in the process of doing it."

UAL filed for bankruptcy on Dec. 9, five days after the Air
Transportation Stabilization Board rejected its application
for a $1.8 billion loan guarantee. The board's executive
director said at the time that United would be allowed to
submit a new plan as part of a Chapter 11 restructuring.

United will take a new business plan to its board this
month and meet with a creditors' committee, Mr. Tilton
said. After getting reaction to the plan, United will
submit the revised application, he said.

Separately, the union representing the pilots at Northwest
Airlines said the airline expected to furlough 150 more
pilots because of cutbacks in Asia flights stemming from
travelers' fears about SARS, according to The Associated
Press.

http://www.nytimes.com/2003/06/02/business/02AIR.html?ex=1055568603&ei=1&en=f3a2a7c1bd10c138


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