American West to Buy Bankrupt U.S. Airways

May 27, 2005

IN a move that proposes to mergethe United States’ seventh- and eighth-rankedairlines, America West HoldingsCorp. and a group of investors last weekannounced plans to buy bankrupt U.S.Airways.Neither America West nor U.S.Airways, both of which fly to Costa Rica,will make any immediate changes in theirroutes or schedules, according to a statementon America West’s Web site,www.americawest.com.If the merger is successful, the airlinewould become the sixth-biggest domesticcarrier in the United States. It would usethe U.S. Airways name but be based inTempe, Arizona, at America West’s currentheadquarters. U.S. Airways is basedin Arlington, Virginia.If the U.S. Bankruptcy Court ruleson the U.S. Airways case later this yearas expected and the airlines receive thenecessary approval by U.S. antitrust andtransportation officials, the airlines willbegin to coordinate scheduling and frequentflier programs, but will maintaintheir own certificates and names for afew years to follow for regulatory purposes.The transaction will require approximately$1.5 billion of new capital frompartners and suppliers, aircraft-relatedfinancings or sales, the release of cashreserves and new investors.

Facebook Comments

You may be interested

The future of tropical forests restoration is community led
Environment & Wildlife
403 views
Environment & Wildlife
403 views

The future of tropical forests restoration is community led

Fabíola Ortiz - October 21, 2018

The future of restoring tropical forests should not be exclusively in the hands of governments, argues Rebecca Cole, director of…

Five dead in Costa Rica rafting accident
Costa Rica
3218 views
Costa Rica
3218 views

Five dead in Costa Rica rafting accident

AFP - October 21, 2018

Four U.S. tourists and a fifth Costa Rican were killed after a river rafting accident on Saturday, the Red Cross…

Mexico opens border to women and children from migrant caravan
Honduras
1575 views
Honduras
1575 views

Mexico opens border to women and children from migrant caravan

AFP - October 20, 2018

Mexican authorities on Saturday allowed dozens of women and children from the Honduran migrant caravan to pass into its territory,…