What Happened To US Airways? (2024)

US Airways has undergone multiple name changes as it operated for 78 years. The airline ceased to exist after it was absorbed by American Airlines in a merger that created the world’s largest airline.

US Airways has a rich history and an enduring legacy that helped shape the landscape of the airline industry in the US. It was one of the first airlines in the United States and later became one of seven legacy carriers. Let’s look back at one of the great airlines of years past.

Early years

US Airways was founded as All American Aviation in 1937 by Founder Lytle Schooler Adams as an airmail service in Pittsburgh, Pennsylvania. The airmail service operated a single-engine, monoplane, high-wing, fixed-tailwheel Stinson Reliant aircraft fleet.

Photo: Aero Icarus via flickr

Adams had experimented on a variety of patents for airmail pickups. He developed a system where an aircraft with a suspended hook could fly by and pick up mail containers with cables attached. Operations began two years later.

Between the founding of the service and the beginning of operations, Adams was ousted as the CEO by the Du Pont brothers, Richard and Alexis Felix, the former of whom became the new CEO. In 1949, a decade after operations commenced, All American Aviation began passenger operations and changed its name to All American Airways. It would be the first of many name changes to come.

Evolution of USAir

As the airline grew and expanded its fleet and route network, it underwent its second rebranding. In 1953, the airline was renamed Allegheny Airlines and operated under that name until 1979.

During its time as Allegheny Airlines, the airline expanded quickly. It operated as a regional carrier flying to New Jersey, New York, Texas, and Canada by the late 1960s.

The 1960s and 1970s saw many mergers and acquisitions, which changed the landscape of the airline industry from many smaller, fractured airlines to larger airlines that controlled a given area.

Some of the highlights of Allegheny’s expansion include:

• 1959 - Added its first turbine airliner, the Corvair 540
• 1965 - Added its first turbojet airliner, the Douglas DC-9-10
• 1967 - First airline to have a network of affiliated regional airlines in partnership with Henson Airlines
• 1968 - Merger with Lake Central Airlines
• 1972 - Merger with Mohawk Airlines

Though Allegheny Air had its fair share of success, it was also plagued with issues. The airline was nicknamed “Agony Air” due to its operational issues, mismanagement, and other factors, such as increased competition and rising fuel prices.

In the late 1970s, the US aviation industry began deregulating, and Allegheny Airlines used it as a turning point to shed its image as a plagued regional airline. It used the opportunity to rebrand once more, and in October 1979, USAir was born.

US Air to US Airways

Less government oversight meant that airlines could operate how they wanted to, and throughout the 1980s, USAir began a campaign of aggressively acquiring other airlines. Commuter airlines such as Pennsylvania Airlines and Suburban Airlines, as well as larger carriers like Pacific Southwest Airlines and Piedmont Airlines, bolstered USAir’s presence nationwide.

US Airways operated the most 737-200s. Photo: Aero Icarus via Wikimedia

These mergers made USAir one of the world’s largest airlines, with over 5,000 daily flights and a network of more than 180 destinations. During the 1990s, the airline began flights to European destinations, including London, Paris, and Frankfurt, using the trijet Boeing 767-200ER.

The airline’s continuous growth culminated in a partnership with British Airways, which invested heavily in USAir. It was one of the airline’s first international partnerships. The deal resulted in some of its Boeing 767 aircraft being painted in the BA livery but operated by USAir. The deal would end in a court battle seven years later when BA tried to partner with American Airlines.

Photo: Cubbie_n_Vegas | Wikimedia Commons

In 1996, USAir’s fleet was aging, and the company decided to turn to Airbus. It opted for the A320 and placed an order for up to 400 A320 aircraft, with 120 orders at the time of signing. Making it one of the largest bulk orders in history, as stated by New York Times. Two years later, the airline ordered 30 A330 widebody aircraft.

In early 1997, the airline rebranded once more. The new US Airways logo and color scheme were based on the US flag, and the aircraft livery changed to the iconic dark blue and gray with white and red accents.

US Airways and the passing of a titan

The name and design weren’t the only changes made to the airline. The change to US Airways also marked a fundamental change in strategy. The airline restructured its routes to ensure a more comprehensive coverage of the US and focused on improving the passenger experience.

Photo credit: Sonder Quest | Shutterstock

In 2000, UAL Corp., the parent company of United Airlines - the largest airline at the time - announced plans to acquire US Airways for $3.4 billion. However, the deal would fail in July 2001, resulting in UAL paying US Airways a $50 million withdrawal penalty.

The September 11th attacks devastated the US aviation industry. However, US Airways suffered significantly more than its other competitors due to the prolonged closure of Regan National Airport (DCA). The airline had a massive presence at the airport, and the closure severely affected its operations.

In the next three years, US Airways would file for bankruptcy twice; once in 2002 and again in 2004. The airline desperately needed a partner, and in 2005, it merged with America West Airlines. Though the original airline ceased to exist, the latter took on the US Airways name to capitalize on the brand recognition. The merger resulted in the fifth-largest airline in the world.

In 2006, the airline attempted to buy out Delta Air Lines for $10 billion, which failed. It took the new US Airways nearly two years to fully merge its operations with America West Airlines. Slowly but surely, the airline would return to profitability.

From 2008 to 2012, US Airways was in talks with United, Delta, and American Airlines at one point or another. In 2010, it seemed as if it would merge with United. However, the latter announced its merger with Continental Airlines shortly after merger talks broke down.

Photo:Wangkun Jia | Shutterstock

In 2012, US Airways and American Airlines, which was bankrupt at the time, began merger discussions. After getting approval from a judge, it was decided that the new airline would retain the American Airlines brand, though US Airways management would operate the new airline. The merger between the two companies resulted in the largest airline in the world at the time.

In 2015, US Airways began to cease operations formally. On October 17th, the last ever US Airways Flight 1939 (the airline's founding year) took off from Philadelphia International and landed as American Airlines Flight 1939 after four legs. After this, US Airways ceased to exist.