The following is the text of a message sent from W. Douglas Parker, the chief executive at US Airways, on Friday to airline employees.
As you know, we have been assessing our strategic options over the last several months and there has been much speculation about our airline and consolidation. With fuel in the $130 range,I thought it would be helpful to let you know where we are at this point. Hopefully that will help to relieve some of the anxiety created by rumors.
After much work and many conversations with other airlines, we have come to the conclusion that consolidation involving US Airways will not occur at this time. This is not to say that something won't occur in the future — as you know I strongly believe that consolidation is required in our industry and that US Airways would benefit from participating. Rather it is simply unlikely that anything will happen in 2008 as our industry continues to struggle with how to function in a world with $130/bbl oil prices.
This environment, while challenging, is not one that we did not anticipate. We are doing a great job of taking care of our customers and we are well prepared to withstand the current environment. Thanks to your hard work, we are No. 1 in on-time performance so far in 2008 and have great momentum as we head into the summer. We have more cash relative to size than most of our peers and have fewer obligations coming due in the next few years.
While we are prepared for this environment, we, like all airlines, need to adapt our plans and business models in light of much higher fuel prices. We are working a number of initiatives and you'll hear more about them in the weeks and months ahead.
In the meantime, please keep up the great work. We're running one of the best airlines in the country and our customers are noticing. That is extremely important in this environment. Thank you for your continual commitment to our passengers and to US Airways.