DA.C - View Single Post - America West Code Share With Continental To End

Gordon Werner · 03-27-2002, 12:49 PM

Wednesday March 27, 11:46 am Eastern Time

Press Release

SOURCE: America West Airlines, Inc.

America West Code Share With Continental To End

PHOENIX, March 27 /PRNewswire-FirstCall/ -- America West Airlines, Inc. today announced that it had received notice from Continental Airlines, Inc. of Continental's intention to terminate the code sharing and related agreements between the two airlines.

Continental's notice stated that code sharing will cease on April 26, 2002. Continental's notice also stated that the airlines' reciprocal frequent flyer and airport club agreements will be terminated effective September 24, 2002.

"America West and Continental have had a successful partnership that lasted nearly eight years," said W. Douglas Parker, America West's chairman and chief executive officer. "However, times change, and the value of the relationship to both airlines had dissipated over time. Continental's action gives America West the opportunity to pursue other alliance opportunities which may be better suited to our customers' needs. Both America West and Continental are committed to making the transition easy for our customers."

The termination of the arrangements with Continental will not affect America West mainline or America West Express service and all tickets for America West-Continental code share service will be honored. America West estimates that the code sharing, frequent flyer and club arrangements with Continental accounted for about $15 million to $20 million in incremental revenue annually for America West.

America West Airlines, the nation's eighth-largest carrier, serves 88 destinations in the U.S., Canada and Mexico. America West Airlines is a wholly owned subsidiary of America West Holdings Corporation, an aviation and travel services company with 2001 sales of $2.1 billion.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause America West's actual results and financial position to differ materially from these statements. The risks and uncertainties include, but are not limited to, the aftermath of the September 11 terrorist attacks, the resulting negative impacts on revenues due to airport closures and reduced demand for air travel, increased costs due to enhanced security measures and related government directives, the ability of the company to obtain sufficient additional financing if necessary to survive the adverse economic effects following the September 11 attacks, limitations on financing flexibility due to high levels of debt, financial and other covenants in debt instruments and cross default provisions and the potential dilutive impact of the warrants and convertible notes issued in connection with the term loan and related transactions, the cyclical nature of the airline industry, competitive practices in the industry, the impact of changes in fuel prices, relations with unionized employees generally and the impact of the process of negotiation of labor contracts on the company's operations, the outcome of negotiations of collective bargaining agreements and the impact of these agreements on labor costs, the impact of industry regulations and other factors described from time to time in the company's publicly available SEC reports. The company undertakes no obligation to publicly update any forward- looking statement to reflect events or circumstances that may arise after the date of this press release.

SOURCE: America West Airlines, Inc.

03-27-2002, 12:49 PM	#1
Gordon Werner Insane Collector Join Date: Jun 1998 Location: Somewhere else Age: 38 Posts: 2,059	America West Code Share With Continental To End Wednesday March 27, 11:46 am Eastern Time Press Release SOURCE: America West Airlines, Inc. America West Code Share With Continental To End PHOENIX, March 27 /PRNewswire-FirstCall/ -- America West Airlines, Inc. today announced that it had received notice from Continental Airlines, Inc. of Continental's intention to terminate the code sharing and related agreements between the two airlines. Continental's notice stated that code sharing will cease on April 26, 2002. Continental's notice also stated that the airlines' reciprocal frequent flyer and airport club agreements will be terminated effective September 24, 2002. "America West and Continental have had a successful partnership that lasted nearly eight years," said W. Douglas Parker, America West's chairman and chief executive officer. "However, times change, and the value of the relationship to both airlines had dissipated over time. Continental's action gives America West the opportunity to pursue other alliance opportunities which may be better suited to our customers' needs. Both America West and Continental are committed to making the transition easy for our customers." The termination of the arrangements with Continental will not affect America West mainline or America West Express service and all tickets for America West-Continental code share service will be honored. America West estimates that the code sharing, frequent flyer and club arrangements with Continental accounted for about $15 million to $20 million in incremental revenue annually for America West. America West Airlines, the nation's eighth-largest carrier, serves 88 destinations in the U.S., Canada and Mexico. America West Airlines is a wholly owned subsidiary of America West Holdings Corporation, an aviation and travel services company with 2001 sales of $2.1 billion. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause America West's actual results and financial position to differ materially from these statements. The risks and uncertainties include, but are not limited to, the aftermath of the September 11 terrorist attacks, the resulting negative impacts on revenues due to airport closures and reduced demand for air travel, increased costs due to enhanced security measures and related government directives, the ability of the company to obtain sufficient additional financing if necessary to survive the adverse economic effects following the September 11 attacks, limitations on financing flexibility due to high levels of debt, financial and other covenants in debt instruments and cross default provisions and the potential dilutive impact of the warrants and convertible notes issued in connection with the term loan and related transactions, the cyclical nature of the airline industry, competitive practices in the industry, the impact of changes in fuel prices, relations with unionized employees generally and the impact of the process of negotiation of labor contracts on the company's operations, the outcome of negotiations of collective bargaining agreements and the impact of these agreements on labor costs, the impact of industry regulations and other factors described from time to time in the company's publicly available SEC reports. The company undertakes no obligation to publicly update any forward- looking statement to reflect events or circumstances that may arise after the date of this press release. SOURCE: America West Airlines, Inc.