US Airways Group confirmed that it is in discussions with America West Holdings Corp., regarding a potential strategic transaction…
US Airways Group confirmed that it is in discussions with America West Holdings Corp., regarding a potential strategic transaction. The company emphasized that there is no assurance that the discussions will lead to a definitive agreement.
US Airways does not intend to make any further announcements until a definitive agreement is reached or discussions are terminated.
While US Airways would not characterize the talks, reports this week said the two carriers were in advanced discussions on a merger. Such a deal would lift US Airways out of Chapter 11 and give America West a strong foothold in the East.
Other reports have said the two could enter into an agreement short of a merger under which America West would invest in US Airways and the two would code-share — cross-market and sell seats on each others` flights.
US Airways Group Inc. has been in Chapter 11 bankruptcy since September 2004, its second trip to bankruptcy court in two years.
US Air has already struck deals with two regional carriers, Air Wisconsin and Republic Airways, for USD$250 million in financing. But the deal with Republic requires it to come up with the additional money.
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