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June 13,
2000
Combination of United-US Airways Will Expand Service
and Create Country's First Comprehensive Airline Network
FOR IMMEDIATE RELEASE
Washington, June 13,
2000 – United Airlines Chairman and CEO James E. Goodwin told
Congress today that the merger between United and US Airways is a
"win-win" for consumers that will deliver travel convenience, global
access and seamless service to millions of airline passengers across
the country.
"This merger will create the nation’s first
comprehensive airline network," Goodwin testified before the House
Transportation and Infrastructure Committee. "It will make air
travel more convenient for consumers by greatly expanding
single-carrier, hassle-free service on thousands of routes."
Goodwin said the key to the transaction was combining the
two airlines' highly complementary networks: United’s east-west
route system and US Airways’ north-south system on the East Coast.
United will continue to serve all cities now served by US Airways,
he noted, and plans to introduce new service as well, including 93
planned non-stop flights to destinations in the United States and
around the world, half of them on routes on which no airline offers
non-stop service today.
"The combination of United and US
Airways will create an airline for the 21st Century," Goodwin said,
delivering the convenience and seamless service that customers
demand: global access, the convenience of one airline, one ticket,
fewer check-ins and fewer baggage transfers. "This merger is about
expanding customer choice. It is about creating growth and economic
benefits for communities across America. It is about delivering more
convenience and more travel options to passengers and shippers
alike," he said.
The merger will create a new carrier, DC
Air, which will bring significant new competition to Washington from
its base at Ronald Reagan Washington National Airport, Goodwin
noted. He said United would divest the bulk of US Airways’
significant assets at Reagan National to DC Air to address possible
regulatory issues about the overlap of routes in Washington that
might result from the merger, which the two airlines announced on
May 24.
Another important result of the transaction will be
the improved access it will give smaller communities, which Goodwin
said would remain an important part of the combined United-US
Airways network. He noted that United's plan to introduce
single-airline service on 560 new city-to-city routes would offer
consumers service not available today to customers of either
airline. "We have an important stake in ensuring that our small
community air service remains as vibrant and efficient as possible,"
Goodwin said in written testimony filed with the committee.
Quality air service helps mid-size cities fuel their
economic growth and United will deliver such service to communities
such as Charleston, W. Va., Tampa, Fla., Rochester, N.Y., and
Raleigh-Durham, N.C. Goodwin also pointed out that improved access
to international markets would help both passengers and shippers
throughout the country. For example, United's plan to introduce the
only non-stop service between Boston and Tokyo will benefit leisure
travelers as well as New England's high-tech business community and
its seafood industry.
United Airlines offers more than 2,400
scheduled flights a day to 135 destinations in 26 countries and two
U.S. territories. United is a member of the Star Alliance. United
Airlines’ Internet address is www.ual.com.
-UA-
Safe Harbor Statement under the
Private Securities Litigation Reform Act of 1995:
This press
release contains certain "forward-looking" statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on management’s current expectations and
are naturally subject to uncertainty and changes in circumstances.
Actual results may vary materially from the expectations contained
herein. The forward-looking statements contained herein include
statements about future financial and operating results and benefits
of the pending merger between United and US Airways. Factors that
could cause actual results to differ materially from those described
herein include: industry capacity decisions; the airline pricing
environment; competitors’ route decisions; the inability to obtain
regulatory approvals; actions of the U.S., foreign and local
governments; domestic and international travel patterns; the
inability to successfully integrate the businesses of United and US
Airways; costs related to the merger; the inability to achieve cost
cutting synergies resulting from the merger; labor integration
issues; the economic environment of the airline industry and the
general economic environment. More detailed information about these
factors is set forth in the reports filed by United and US Airways
with the Securities and Exchange Commission. Neither United nor US
Airways is under any obligation to (and expressly disclaims any such
obligation to) update or alter its forward-looking statements,
whether as a result of new information, future events or otherwise.
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