USAIR GROUP INC
8-K, 1996-10-25
AIR TRANSPORTATION, SCHEDULED
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                     SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549

                                  FORM 8-K

           CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                      SECURITIES EXCHANGE ACT OF 1934

                      Date of report: October 24, 1996

                             USAir Group, Inc.
                      (Commission file number: 1-8444)

                                    and

                                USAir, Inc.
                      (Commission file number: 1-8442)
        (Exact names of registrants as specified in their charters)

                                  Delaware
                          (State of Incorporation
                            of both registrants)

                       USAir Group, Inc. 54-1194634
                          USAir, Inc. 53-0218143
                   (I.R.S. Employer Identification Nos.)

                             USAir Group, Inc.
                     2345 Crystal Drive, Arlington, VA  22227
                     (Address of principal, executive offices)
                                  (703) 418-5306
                          (Registrant's telephone number)

                                    USAir, Inc.
                     2345 Crystal Drive, Arlington, VA  22227
                     (Address of principal, executive offices)
                                  (703) 418-5306
                          (Registrant's telephone number)



Item 5.  Other Events

        USAir announced on October 24, 1996 that it is terminating its Code
Share Agreement with British Airways, effective as of March 29, 1997. In
connection with the termination of the Code Share Agreement, USAir
terminated certain other relationships with BA, including the airlines'
Frequent Traveler Program Participation Agreement.

Item 6.  Financial Statements and Exhibits

(c)  Exhibits

      Designation               Description

          99.1        News release, dated October 24, 1996,
                      of USAir Group, Inc. and USAir, Inc.


                                    SIGNATURES

        Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrants have duly caused this report to be signed on their
behalf by the undersigned thereunto duly authorized.

                                    USAIR GROUP, INC.

Date: October 24, 1996              By: s/a Lawrence M. Nagin
                                        -----------------------------
                                            Lawrence M. Nagin
                                            Executive Vice President,
                                            Corporate Affairs & General
                                              Counsel

                                    USAIR, INC.

Date: October 24, 1996              By: s/a Lawrence M. Nagin
                                        ------------------------------
                                            Lawrence M. Nagin
                                            Executive Vice President,
                                            Corporate Affairs & General
                                              Counsel


                                   EXHIBIT INDEX


    Designation                    Description                      Page

       99.1           News release, dated October                   N/A
                      24, 1996, of USAir Group, Inc.
                      and USAir, Inc.







                 USAIR COMPELLED TO END BRITISH AIRWAYS CODE-SHARE


        ARLINGTON, VA., October 24, 1996 -- USAir said today that it is
compelled to end its code-share relationship with British Airways effective
March 29, 1997, in light of the British carrier's proposed alliance with
American Airlines.

        USAir also said that it has informed British Airways that the link
between the two airlines' frequent traveler programs will end on the same
date. The USAir Frequent Traveler Program will maintain its ties to Air
France, Alitalia, Sabena, Swissair, All Nippon Airways, Northwest Airlines,
Qantas and the 17 Latin American members of the LatinPass program.

        The company said it will work closely with its customers and
members of its Frequent Traveler Program to ensure continued quality and
breadth of service.

        USAir has applied to the U.S. Department of Transportation to
operate its own flights between London's Heathrow Airport and USAir
gateways at Boston, Charlotte, Philadelphia and Pittsburgh.

        Passengers booked to travel on code-share flights between now and
March 29 are unaffected, including one-time check-ins at USAir counters and
baggage service. Members of USAir's Frequent Traveler Program also will
continue to accrue miles for travel on British Airways until March 29,
1997. All travel awards issued after October 24 and prior to March 29 will
be honored for one year from date of issue.

        USAir operates almost 5,000 jet and USAir Express flights daily to
more than 200 destinations worldwide including 39 states in the U.S.,
Puerto Rico, Canada, Mexico, Bahamas, Bermuda, U.S. Virgin Islands, Cayman
Islands, Jamaica and St. Maarten. European destinations include Paris,
Frankfurt, Munich, Rome, Madrid, Berlin and Dusseldorf.

(NOTE TO REPORTERS/EDITORS: USAir's decision to end its mileage reward and
code-sharing programs with British Airways as a result of the British
carrier's proposed alliance with American Airlines will have no significant
immediate effect on customers. This brief outline covers points travelers
will find of interest:)


o       The relationship between the frequent traveler programs ends on
        March 29, 1997. Members of the USAir Frequent Traveler Program
        continue to accrue mileage on British Airways flights until that
        time.

o       All Frequent Traveler Program awards issued for British Airways
        flights after Oct. 24 and before March 29 can be used for one year
        from the date they are issued. Beginning on March 29, there is a
        90-day window during which USAir program members can continue to
        request award travel on British Airways, which can be used within
        the next six months.

o       USAir Frequent Traveler Program miles may be redeemed for
        international travel on USAir and its many partners.

o       USAir flies to Paris, Frankfurt, Rome, Munich and Madrid in Europe
        and provides service via partner Deutsche BA to Berlin and
        Dusseldorf. USAir also is actively pursuing the rights to fly to
        London Heathrow from Boston, Charlotte, Philadelphia and
        Pittsburgh. USAir's other international destinations include
        Canada, Mexico and numerous points in the Caribbean.

o       USAir Frequent Traveler Program members will have their pick of 243
        international award destinations ever after the agreement ends with
        British Airways.

o       USAir's Frequent Traveler Program continues to be one of the most
        beneficial customer loyalty programs in the industry. Mileage
        accumulated in the USAir program does not expire and members can
        redeem their awards on Air France, Alitalia, Sabena, Swissair, All
        Nippon Airways, Northwest Airlines, Qantas and the 17 Latin
        American airlines who are members of the LatinPass program.

o       From the customer perspective, the ending of the code-share
        arrangement means that USAir domestic flights that connect to
        British Airways' London services no longer will be sold as a
        British Airways operation.

o       The price of tickets already purchased is not affected.

o       For general questions about the USAir Frequent Traveler Program,
        call 1-800-872-4738.

o       Questions about international travel arrangements already made
        should be directed to the organization through which the
        arrangements were booked and ticketed or to USAir International
        Reservations at 1-800-622-1015.





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