Skift Take
This is the true story about how a scrappy airline from Tempe, Arizona merged at just the right times to create the world's largest airline without losing its soul.
US Airways is poised to finally become the industry giant it has long aspired to be.
The company has often been ridiculed within the aviation industry and remains a perennial afterthought among travelers. But it hopes to shed that image by merging with the larger — but troubled — American Airlines, a deal which will create the world's largest airline.
The deal is expected to be announced Thursday morning, according to three people close to the situation, who requested anonymity because they are not authorized to speak about the merger.
American has been in bankruptcy since November 2011. Its creditors will own the majority of the new carrier but it will be US Airways management at the helm. Airline consultant Paul Sterbenz calls it "an example of the little fish swallowing the big fish."
US Airways was patched together from several scrappy regional carriers on the brink of bankruptcy. Though it has grown over its 73-year history to become the nation's fifth largest carrier, in many ways, it has remained a second-string player.
The merger with American will elevate both airlines to the same level as Delta and United. International business travelers will be left with just three mega-airlines to pick from and the merger will likely bring to a close more than 30 years of U.S. airline consolidation.
Even within an industry known for frequent mergers, US Airways stands out.
Like most U.S. airlines, its origins can be traced back to carrying mail for the post office. The airline started such service in 1939. Its forbearers — Allegheny and Piedmont — soon expanded into shuttling passengers from one small city to another in western Pennsylvania, North Carolina and the Ohio River Valley. Neither were major players. When larger airlines abandoned cities, they swooped in, taking over the service.
Growth also came through acquisitions of even smaller airlines: Lake Central, founded by an air racer, in 1968; Mohawk, which expanded thanks to financing from a farmers' cooperative, i
