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Spokane, Washington  Est. May 19, 1883

Usair Reinvents Itself Airline Takes New Name, Sets Stage For Big Overhaul

Karen Schwartz Associated Press

Saying it was guilty of doing just about everything wrong, USAir announced Tuesday it would reinvent itself, starting with a new name: US Airways.

“The company needs fixing. It is very obvious,” said Rakesh Gangwal, USAir’s president and chief operating officer.

Speaking to industry analysts for the first time since Stephen M. Wolf took over as chairman and chief executive earlier this year, USAir officials announced a wide-ranging overhaul - from a new corporate logo to plans to shave costs.

But they gave few specifics during the four-hour presentation as to how they would fix the problems, sparking a mixed reaction over whether such a plan would actually work.

“It would be very hard for them to start the program, then call it off,” said Philip A. Baggaley, managing director of corporate ratings for Standard & Poor’s, who said the name change is “a very small part of the whole puzzle.”

To identify and solve problems, the airline has set up 15 task forces, each made up of management, union leadership and rank and file employees. They are looking at ways to improve service, employee morale and cut costs.

Gangwal, noting the airline is made up of six different carriers that merged between 1968 and 1989, said they have never been operationally and culturally integrated.

Jonathan Wooten, who owns about one-half percent of USAir stock, applauded the move, saying it’s “a great marketing move because USAir has a bad brand image.”

But two USAir ticket agents in Manhattan said they didn’t like the new name, noting it sounds, and looks, similar to British Airways.

Among the changes under way or planned:

The new name and logo, a stylized version of the national flag, which will be phased in beginning in 1997.

A new color scheme for planes, airport lounges, and boarding passes. The planes will be painted dark blue and medium gray, with red and white accent lines. The interiors of all aircraft will be refurbished so that they are uniform.

A first class on flights to Europe. The service will have sleeper-type seats and other amenities. First-class cabins on domestic flights will be expanded.

A revamped frequent flier program with a top tier for those who fly more than 100,000 miles a year.

Won’t take delivery on eight Boeing 757s, scheduled for delivery in 1998, but will begin talks with Boeing and Airbus for new widebody aircraft.

Divulged that its order for up to 400 new planes from Airbus includes a provision that they will not be delivered unless USAir is cost competitive.