US Airways and Delta means more IT integration

US Airways and Delta means more IT integration

Summary: US Airways just can't get enough of integrating technology systems. The airline, which was formed via the merger of US Airways and America West, is now offering to buy Delta for $8 billion in cash and stock to create a "new Delta.

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TOPICS: Travel Tech
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US Airways just can't get enough of integrating technology systems. The airline, which was formed via the merger of US Airways and America West, is now offering to buy Delta for $8 billion in cash and stock to create a "new Delta." Meanwhile, the technology systems of US Airways and America West haven't been completely integrated, according to a US Airways spokesman.

The merged US Airways got off the ground a little more than a year ago and the company's information systems were estimated to take about two to three years to combine. US Airways told investors today that if Delta accepted its offer it could save $200 million by merging information systems, a large chunk of the $710 million in annual savings the merger would create. According to US Airways a single system is needed in most cases with redundant systems being jettisoned.  Indeed, US Airways Joe Beery will be in a race against the clock to wrap up the US Airways-America West IT integration before Delta arrives, but he seems to be on track.  Baseline's David Carr updated the status of the airline's technology integration last month. 

In US Airways investor presentation today, the company said the integration work from the America West deal will be finished before Delta is acquired indicating that US Airways is ahead of schedule. The company projected today it would cut over to one reservation system in the first half of 2007. Electronic Data Systems is likely to play some role in the cutover.

As for Delta, a merger would be bittersweet to the airline's technology department. Delta bet big on technology to keep the airline out of bankruptcy, but the wager fell short. It is yet to be determined what happens to Delta's systems if US Airways takes it over. It'll most likely be Beery's call. 

Topic: Travel Tech

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  • Scary

    An awful airline being bought out by an extremely awful airline, how wonderful for the consumer. Wasn't US Airways just filing for bankruptcy recently? How can they now be buying other airlines?
    tic swayback
  • The airline, which was formed via the merger of US Airways and America West

    Wrong...

    US Airways began, in the mid 1930s, calling itself All American Aviation. It began service as an airmail carrier, supplying service to many small western Pennsylvania and Ohio Valley communities. Then, in 1949 All American Aviation changed its name to All American Airways; with the change of name the airline also changed direction in terms of the service it offered. The airline is able to focus on passenger service with the introduction of the DC-3. The airlines? route system continues to grow, and in 1953 it changes its name again, this time to Allegheny Airlines.

    ...Allegheny decided to yet again change its name, and in 1979 it became USAir.

    In a two-week period in 1996, USAir announced an order up to 400 new Airbus A319, A320 and A321 for delivery starting in 1998 and continuing through 2009; it also announced yet another new identity, renaming itself US Airways.

    For the FULL history, see below...

    http://www.embryriddle.edu/research/BA590/USAIR/chapters/ch1.htm
    IT_Guy_z