Airline Merger Could Be Completed by October

As America West Airlines and US Airways approach the final milestones toward their planned combination, officials say the two companies could start operating as one by October.

To complete the merger, shareholders of America West Holdings Corp., the parent of Tempe, Ariz.-based America West Airlines, will vote Tuesday on whether to approve the company’s union with US Airways Group Inc. US Airways’ unsecured creditors, a key party in the airline’s bankruptcy case, have already given a thumbs-up.

Then on Thursday, U.S. Bankruptcy Judge Stephen Mitchell will hold a hearing in Virginia to consider final court approval of the US Airways reorganization plan, the centerpiece of which is its proposed union with America West.

If shareholders and the court approve the corporate marriage, customers would begin to see image changes almost immediately, airline executives said.

Although America West is the acquiring airline, the US Airways name would survive and be used to create the No. 6 airline in terms of passenger miles. It would be based in Tempe, and America West Chief Executive Doug Parker would be CEO.