Complain about a product or service

US Airways-America West Merger Gets Loan Board Approval

July 25, 2005
Bankrupt US Airways is on final approach to its merger with America West, with crucial approval from the Air Transportation Stabilization Board, which backs loans for both airlines.

US Airways • Consumer Complaints • Christmas Complaints • An Insider's View --- News • Bankruptcy Exit Plan Ready • No More Pretzels In Coach • US Airways, America West Merger On Course • US Airways' Loss Worse Than Reported • US Airways Misses Another Bankruptcy Filing • US Airways, America West Talking Merger • US Airways Gets a Little More Time From Creditors • Report Slams US Airways Christmas Performance • US Airways Wins Concessions from Machinists • US Airways Turns In Jets, Cancels Flights • Florida: Treatment of Quadriplegic Passenger "Callous" • Loan Extension Provides More Turnaround Time • Attendants Accept Cuts, Machinists Still Hold-Outs • Machinists May Walk • January Crucial for US Airways • A Christmas Nightmare • Breathing Room • Turnaround Plans • US Air Deathwatch

The carriers have been in negotiations on the treatment of those loans under their proposed merger.

"We appreciate the ATSB working closely with us to further our efforts to restructure US Airways and preserve jobs while protecting the federal government's interests," said US Airways President and Chief Executive Officer Bruce R. Lakefield. "Their action today will enable the new US Airways to become a stronger and more viable airline."

"Today's announcement continues the positive momentum for our planned merger and brings us one step closer to building a stable future for our airlines," America West Chairman and CEO Doug Parker said.

Pending final bankruptcy court and US Airways board approval and upon close of the merger, the two airlines' outstanding ATSB loan guarantees will be consolidated with payments beginning September 2005 through September 2010. Final terms are still being negotiated.

The deal will create the first full-service nationwide carrier with the pricing structure of a low-fare airline. It ties together US Airways' large East Coast route structure and America West's routes in the West.

The new airline will be called US Airways but will be based in Tempe, Arizona, current home of America West, leaving behind US Airways' longtime headquarters adjacent to Washington's Reagan National Airport in Arlington, Virginia.

The companies plan to create a holding company that will own both airlines and operate them as separate companies for two to three years while the operations are combined. The frequent flier programs and route structures will be combined more quickly, giving regular customers many more options than they now have.

America West Airlines is currently the nation?s second largest low-fare carrier with 14,000 employees serving approximately 60,000 customers a day in more than 90 destinations in the U.S., Canada, Mexico and Costa Rica.

US Airways is the nation's seventh-largest airline, serving 181 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways, US Airways Shuttle and the US Airways Express partner carriers operate approximately 3,400 flights per day.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Follow us on Twitter.

Back to the top |