Manufacturing Industry
US Airways and America West close merger
Airline Industry Information, Sept 28, 2005
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
US Airways Group Inc (OTC BB:UAIRQ.OB) and America West Airlines (NYSE:AWA) closed their merger yesterday (27 September).
The two airlines have said that they will be creating a company that plans to mix low-cost with a larger carrier's reach and service. Issues that threaten the success of the merged airline, ranked as the fifth largest in the US, are a poor industry record for mergers and high fuel costs as well as having to find a way to successfully integrate the thousands of flight crew, cabin crew and mechanics into one company over the next two years, Reuters reported.
The value of the merger has been estimated at USD1.5bn.
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