Us airways and America West are in advanced merger talks to create what would be the nation's sixth-largest airline, The Wall Street Journal...

Share story

NEW YORK — US Airways and America West are in advanced merger talks to create what would be the nation’s sixth-largest airline, The Wall Street Journal reported yesterday, citing people familiar with the matter.

The deal has not been completed and some obstacles remain, particularly since US Airways remains in Chapter 11 bankruptcy protection, the newspaper said on its Web site.

A merger between US Airways, the nation’s seventh-largest carrier, and America West, the eighth-largest, would require approval from several parties, including the bankruptcy judge, US Airways’ largest creditor General Electric, America West shareholders, unions and the federal government, the Journal said.

The Journal said the combination of US Airways and America West would become the sixth-largest airline, bigger than discount leader Southwest Airlines.

Most Read Stories

Unlimited Digital Access. $1 for 4 weeks.

With America West’s hubs in Phoenix and Las Vegas and US Airways’ in Philadelphia and Charlotte, N.C., the combined company would create a low-cost airline with many more choices of routings, the newspaper said.

An America West spokesman declined to comment on the report. US Airways could not immediately be reached for comment.

In February, America West Chief Executive Doug Parker said he expected a wave of mergers to sweep U.S. low-cost carriers, and he saw his company participating.