US Airways and America West Working Toward Merger

    April 20, 2005

US Airways has reportedly been in merger talks with several carriers, but has gotten the farthest with America West.

The two companies are now looking for an investor or investors to put up $500 million in equity.

US Airways is currently under bankruptcy protection.

According to a New York Times article,

“People close to the talks characterized them as well along and said that a conclusion could be reached within a few weeks.

America West’s chief executive, W. Douglas Parker, has been a loud proponents of the need for consolidation within the industry, while US Airways has been viewed by many analysts as ripe for a takeover once it emerges from bankruptcy. US Airways, which is based in Arlington, Va., is the seventh-largest airline and America West, based in Phoenix, the eighth largest.”

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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