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US Airways and America West Discuss Possible Merger

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US Airways and America West have been in merger talks, and the companies are now looking for investors.

Neither company is in the best financial state. US Airways is under bankruptcy protection, and apparently America West isn’t doing incredibly well either.

US Airways has been looking for another carrier to merge with, but America West seems to be the likely one to go through with it.
According to a USA Today article,

“The talks are aimed at creating a low-cost carrier with market strength on both the East and West coasts. They have been the subject of widespread speculation among industry analysts and in news stories for more than a month. A source with direct knowledge of the talks confirmed that negotiations are now in an advanced stage, but said the major sticking point is the search for funding.

The talks are code-named “project barbell” after the shape of the two carriers’ combined route maps, the source says. The carriers would operate under the US Airways name, though initially their operations would remain largely separate.”

The deal isn’t anywhere near completion. It still has many hurdles to climb such as approval from shareholders, the Air Transportation Stabilization Board, the bankruptcy court, and the unions of both carriers to name a few.

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US Airways and America West Discuss Possible Merger
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