History
The US Airways Shuttle was formerly operated as Shuttle, Inc. in conjunction with a syndicate of 22 banks led by Citigroup who obtained control of the company after a failed buyout by real estate mogul Donald Trump. Trump purchased the shuttle from Eastern Airlines in 1989. It was operated as the Trump Shuttle from June 7, 1989 until 1990 when the company's loans defaulted, and ownership passed to Trump's bank partners, led by Citigroup.
Unable to sell the operation outright to Northwest Airlines, American Airlines, or USAir Group, the banks negotiated a complex marketing arrangement in which USAir Group would assume 40% ownership and agree to manage the operation for ten years, including fares, financial record keeping, advertising, promotions, aircraft maintenance, and labor relations. The same agreement gave USAir an option to purchase the entire shuttle operation on or after October 10, 1996 with an exclusive right to do so until April 10, 1997. On April 7, 1992 Trump Shuttle ceased to exist when it was merged into a new corporation, Shuttle, Inc., which began operating as the USAir Shuttle on April 12.
US Air Group, subsequently announced the purchase of the remainder of Shuttle, Inc. on November 19, 1997, "continued to operate the US Airways Shuttle separately from the rest of the airline. Employees of the Shuttle also operated on a separate seniority list, since the company operated as a wholly owned subsidiary of US Airways Group".
Shuttle Inc. remained as a subsidiary of US Airways Group until July 1, 2000, when "the US Airways Shuttle merged into the mainline operation of US Airways." US Airways Group, as the USAir Group is now known due to the merger with America West Airlines, has since repainted their aircraft to remove the "Shuttle" part from the name. As an "airline with an airline," and a subsidiary and operationing division of the USAir Group, the US Airways Shuttle no longer exists.
However, the Northeast service of frequent shuttle flights and strategic marketing by way of the New "merged" US Airways under the US Airways Group, does continue to operate without being considered a separate division or subsidiary airline.
All planes on the shuttle routes had a single-class configuration until 2004, when first class seats were added.
Read more about this topic: US Airways Shuttle
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