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- Aug 30, 2002
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DJN: WSJ(5/9) Merger Talks Gain Between US Air And America West
(Dow Jones 05/09 00:00:42)
(From THE WALL STREET JOURNAL)
By Susan Carey and Melanie Trottman
Merger negotiations between US Airways Group Inc. and America West Holdings Corp. picked up momentum last week, according to people familiar with the matter, with the carriers hoping to hammer out a deal ahead of America West's annual meeting May 17.
Several potential investors in a merger are studying a proposed business plan that foresees the combined company operating under the US Airways brand and focusing attention on Midwestern markets while introducing flights to Hawaii.
"There are abundant sources of equity for the deal," said one person close to the talks. Those investors could include hedge funds, other airlines and Retirement Systems of Alabama, a pension fund that is US Airways' largest shareholder. Pension-fund officials have declined to comment.
People involved with the talks assume that Doug Parker, America West's chairman and chief executive, would head the combined company. Questions about which executives from the respective airlines would take what roles in the merged entity haven't been sorted out, said one person. A decision about where the combined carrier would be headquartered also remains under discussion. US Airways is based in Arlington, Va., and America West is in Tempe, Ariz.
(Dow Jones 05/09 00:00:42)
(From THE WALL STREET JOURNAL)
By Susan Carey and Melanie Trottman
Merger negotiations between US Airways Group Inc. and America West Holdings Corp. picked up momentum last week, according to people familiar with the matter, with the carriers hoping to hammer out a deal ahead of America West's annual meeting May 17.
Several potential investors in a merger are studying a proposed business plan that foresees the combined company operating under the US Airways brand and focusing attention on Midwestern markets while introducing flights to Hawaii.
"There are abundant sources of equity for the deal," said one person close to the talks. Those investors could include hedge funds, other airlines and Retirement Systems of Alabama, a pension fund that is US Airways' largest shareholder. Pension-fund officials have declined to comment.
People involved with the talks assume that Doug Parker, America West's chairman and chief executive, would head the combined company. Questions about which executives from the respective airlines would take what roles in the merged entity haven't been sorted out, said one person. A decision about where the combined carrier would be headquartered also remains under discussion. US Airways is based in Arlington, Va., and America West is in Tempe, Ariz.
