America West and US airways merger clears first hurdle
26.06.05
The US Department of Justice has cleared the way for the merger between America West and US Airways. The merger still needs to clear a number of other hurdles, including getting the approval from America West shareholders, US Airways creditors, the US Bankruptcy Court, the Securities and Exchange Commission, the US Department of Transportation and the Air Transportation Stabilization Board.
The two airlines announced plans to merge last month to create a low fares carrier under the US Airways brand, connecting more than 200 destinations. But both airlines hope to finalise the deal by this autumn.
When completed, the merger will be backed by $500 million in new equity investment plus other potential equity and financing sources still under negotiation. Participation by suppliers and business partners will provide the company with more than $1.5 billion in cash at the time of the transactions closing, a joint statement said.
The statement added that both airlines remain on track to secure all necessary regulatory approvals this summer, with the goal of closing on transaction by early autumn still on track.
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