Uncle Milty named as a member of the board of directors of US Airways
.Air Canada chairman Robert Milton has been named to the board of US Airways Group Inc. after the Canadian carrier's parent company completed its $75-million (U.S.) investment in the American airline yesterday.
Mr. Milton said his new role as a director at US Airways of Arlington, Va., which merged with Tempe, Ariz.-based America West Holdings Corp. -- solidifies Air Canada's partnership in the combined U.S. carrier.
In May, Air Canada's parent, ACE Aviation Holdings Inc., announced it would become a 7-per-cent equity owner in the merged US Airways-America West entity.
Shares in the newly expanded US Airways began trading yesterday on the New York Stock Exchange, closing at $19.30, down from its intraday high of $21.40.
Although US Airways is a so-called legacy airline, it chose the ticker symbol LCC to usher in a new era as a low-cost carrier.
"Our business model will enable us to compete aggressively with any airline, legacy or low-cost, in terms of reliability, amenities and affordability," US Airways chairman and chief executive officer Doug Parker said in a statement yesterday.
The aviation marriage brings US Airways out of bankruptcy court protection and creates the fifth-largest domestic carrier in the United States, Mr. Parker said.
Mr. Milton added that Air Canada passengers will benefit from his airline being in the Star Alliance along with US Airways.
Air Canada, which itself emerged from bankruptcy protection on Sept. 30, 2004, is keen to scoop up connecting U.S. passengers at western regional terminals such as Phoenix and Las Vegas, promoting Asian destinations through Vancouver International Airport.
One of the highlights of the transaction is Air Canada Technical Services' five-year, $1.5-billion (Canadian) aircraft maintenance and overhaul contract for US Airways.
"We expect to see an acceleration of, and increasing growth in, the work that ACTS does for the new carrier," ACTS president William Zoeller said in a statement.
Mr. Zoeller said the finishing touches are being put on final maintenance contracts.
ACTS is scheduled to perform heavy maintenance on US Airways' Airbus A330 aircraft starting Sunday, as well as work in the future on various Airbus and Boeing models.
Still doing heavy mtce for Delta.