SkyMedia to launch ads on US Airways

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September 21, 2005

SkyMedia International will roll out advertising on US Airways Group Inc. passenger-tray tables after the merger of America West Holdings Corp. and US Airways is completed.

SkyMedia delivers advertising on flights lasting one to six hours. The company says its advertising yields 92 percent recall by 98.6 percent of airline passengers that use their tray tables during a flight.

"We are very pleased," said Nick Pajic, chief executive of SkyMedia. "This represents an increase of more than 250 percent in airplanes and seat-back tray table inventory. We are going from 18,000 tray-table ads and 140 airplanes to 46,000 tray-table ads and 340 airplanes."

Financial terms of the agreement weren't disclosed.

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SkyMedia of Phoenix launched its advertising on airline passenger-tray tables in December 2003 on America West aircraft.

Last week, a federal judge approved US Airways' Chapter 11 reorganization plan, clearing the way for its $1.5 billion merger with America West (NYSE: AWA). The merger could take place as soon as Tuesday.

The consolidated company will take the US Airways (OTCBB: UAIRQ) name and be headed by America West Chief Executive Doug Parker.

US Airways CEO Bruce Lakefield will be vice chairman following the merger.

The combined airline, which expects to generate annual revenue of $10 billion, will be based in Tempe, Ariz., home of America West.

US Airways, which is based in Arlington, Va., is the dominant carrier at Philadelphia International Airport.