US Airways boss says merger woes are smoothing out

Customer-service problems that plagued US Airways following its merger with America West Airlines are coming to an end, the company's chief executive told a conference of airport representatives in Tucson on Monday.

Speaking at Loews Ventana Canyon Resort, US Airways Chairman and CEO Doug Parker told the group that the 2005 merger resulted in "some customer-services issues that we didn't anticipate" - namely problems with the airlines' separate booking systems, resulting in long lines at ticket counters and missed flights.

"We didn't manage that particularly well," he said, adding that the differences between the systems have been smoothed out.

However, consumers might not have noticed the difference yet.

Rated as separate companies, US Airways and America West tied for last place in a Consumer Reports reader satisfaction survey of 18 major carriers, published in the magazine's July issue. The airlines both earned scores of 62 out of a possible 100 points for overall satisfaction. The top performer, JetBlue Airways, earned a score of 87.

Parker, who was formerly president, chairman and CEO of America West, was invited to speak about the merger and the industry in general at the Airports Council International - North America Marketing and Communications Conference, hosted by the Tucson Airport Authority.

Nearly 400 representatives from about 140 airports and other related organizations across North America are attending the conference, which lasts through Wednesday.

Despite service-related problems, Parker spoke favorably about the merger, which he said helped the formerly bankrupt US Airways become profitable again.

Parker said more consolidation in the industry is likely as airlines grapple with rising fuel costs and the difficulties of increasing market share. The past quarter was particularly difficult, he said, adding that he expected most airlines would show earnings declines.

"Our goal is to stay in much better shape than the others so we can control our destiny instead of being one of the ones out looking for a partner," Parker said.

US Airways is interested in expanding its international routes, he said. In part to facilitate that expansion, the Tempe-based company is ordering 92 planes from French plane-maker Airbus, including some of the wide-body Airbus 350s.

But overall, Parker said most airlines will be less inclined toward expansion, opting only for routes that are proved to be profitable.

After Parker's speech, Tucson Airport Authority President and CEO Bonnie Allin said she hopes airlines will continue adding flights to Tucson. The airport has experienced passenger growth of more than 22 percent over the past five years.

"We just don't have enough seats to sell," she said.

* Contact reporter Christie Smythe at 434-4083 or [email protected]

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