Emotions on edge at AmWest meeting

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Emotions on edge at AmWest meeting
The annual America West Holdings Corp. shareholders' meeting Tuesday, held at the carrier's Tempe, Ariz., headquarters, was anything but ordinary, The Business Journal of Phoenix reports. 

  

 
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Chief Executive Doug Parker told the crowd of 250-plus, that he would not be able to comment about any pending merger with US Airways Group Inc.

However, that didn't stop shareholders and employees from expressing their views about a partnership. 

One shareholder, Seymour Licht of Phoenix, who said he owns 60,000 shares of America West, demanded that Parker provide details on any proposed merger. 

"I am under the strange idea that the stockholders of this company own this airline, not management," Licht said. "I resent (Parker's) attitude when I as a stockholder want to ask a question and your arrogance is unacceptable." 

In response, Parker said, "There is no (merger) news to share with you today," adding that due to regulatory rules and regulations, since America West is a publicly traded company, he cannot comment about possible merger scenarios. 

"And what we've said before is that -- once one of two things happen -- that talks are called off, or that we have a definitive merger agreement, we can't make any public statements until then," Parker said later in the meeting. 

Several America West employees addressed Parker, asking him to commit to early statements that any merger deal reached with US Airways (OTCB:UAIRQ.OB) would be good for the rank-and-file employees at the Tempe carrier. 

Many workers fear US Airways' more-tenured workers would receive better pay, benefits and schedules and in some cases keep their jobs over America West staff. 

Parker encouraged employees to be patient and that someday soon he hoped to be able to openly discuss the merger situation. 

Industry observers anticipate that merger details may be released Thursday, at a previously scheduled bankruptcy hearing for Virginia-based US Airways, which filed for Chapter 11 protection in September. 

An America West-US Airways combination would create a carrier that would rival Dallas-based Southwest Airlines (NYSE:LUV) in size, with a wide choice of routes available from the two airlines' main hubs in Charlotte, Philadelphia, Phoenix and Las Vegas. 

US Airways operates its largest hub at Charlotte/Douglas International Airport. 

America West (NYSE:AWA) serves 95 destinations daily in the United States, Canada, Mexico and Costa Rica. US Airways, operating under Chapter 11 bankruptcy reorganization, flies to nearly 180 communities in the United States, Canada, Europe, the Caribbean and Latin America. 

The Business Journal of Phoenix is a sister publication of the Charlotte Business Journal.



? 2005 American City Business Journals Inc.


Roger
EWROPS

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