US Air Creditors Approve America West Merger

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US Air Creditors Approve America West Merger
September 14, 2005 
Creditors of US Airways have voted overwhelmingly to approve the company's bankruptcy reorganization plan, which is centered around a proposed merger with America West Airlines, US Airways said on Wednesday.

The affirmation followed approval on Tuesday by America West shareholders.

A federal bankruptcy judge in Alexandria, Virginia, will consider the merger proposal at a hearing beginning on Thursday.

US Airways' bankruptcy emergence and merger proposal was approved by 80 percent of more than 1,500 votes cast by creditors, the airline said.

Creditors include pension fund and investor Retirement Systems of Alabama, aircraft manufacturer Airbus, the federal Pension Benefit Guaranty Corporation, General Electric, banks, airports, hotels and other vendors.

At least two unions are opposed to the plan based on a proposed incentive program to retain senior officers during the merger process.

US Airways and America West hope to complete the deal this autumn, but it could take two years or more to combine their entire operations.

(Reuters)


Roger
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