US Airways filed for bankruptcy twice in three years — then merged with America West

US Airways traces its roots to 1939, when All American Aviation began as a mail-delivery service in Pittsburgh. It became Allegheny Airlines in 1953, renamed USAir in 1979 and US Airways in 1997. Through acquisitions of Lake Central, Mohawk, PSA, and Piedmont, it grew into one of the largest US carriers, with a network centered on the Eastern seaboard and hubs at Philadelphia, Charlotte, and Washington Reagan National.

The airline was uniquely vulnerable to the September 11 attacks: it was the largest carrier at Washington Reagan National, which was closed for an extended period after the attacks. The resulting revenue collapse forced US Airways into its first Chapter 11 filing on 11 August 2002. The airline received a government-guaranteed loan from the Air Transportation Stabilization Board and emerged in March 2003 after cutting costs and liquidating pensions for 6,000 pilots — one of the first major airlines to terminate its pension plans in bankruptcy.

The restructuring was insufficient. By September 2004, rising fuel costs and deadlocked labor negotiations pushed US Airways back into Ch.11. Pilots staged a sick-out around Christmas 2004, and the DOT blamed poor management. This second bankruptcy was resolved through a reverse merger with America West in September 2005: America West acquired US Airways' assets, and CEO Doug Parker took control. The new company kept the US Airways name for brand recognition but moved its HQ to Tempe, Arizona.

The merged airline became profitable in the late 2000s. In February 2013, US Airways merged with American Airlines in an $11 billion deal, creating the world's largest airline at the time. The US Airways brand was retired on 17 October 2015, when the final flight (numbered 1939, for the founding year) flew from Philadelphia to Charlotte. Doug Parker became CEO of the combined American Airlines.