America West Holdings
| Company type | Public |
|---|---|
| Industry | Airline holding company |
| Founded | September 4, 1981 |
| Founder | Edward R. Beauvais |
| Fate | Merged with US Airways Group |
| Headquarters | Tempe, Arizona , United States |
Key people | Doug Parker (CEO at merger) |
| Products | Airline services (America West Airlines, America West Express, America West Vacations) |
America West Holdings Corporation, headquartered in Arizona, was primarily the parent company of America West Airlines. On May 19, 2005, it revealed intentions to acquire US Airways Group, which was based in Arlington, Virginia.
Following the merger, the combined organization took on the US Airways Group name and operated from America West’s former base in Tempe. The Arlington offices of US Airways were shut down, and a significant number of US Airways executives were dismissed. Doug Parker, then CEO of America West, assumed leadership of the merged airline. The merger was officially completed on September 27, 2005, while the airlines’ FAA operating certificates were consolidated on September 25, 2007, marking the retirement of the America West Airlines brand after 24 years.
History
Established on September 4, 1981, by a group of investors led by Edward R. Beauvais, America West Airlines commenced its inaugural flight on August 1, 1983, utilizing a leased Boeing 737. Beauvais remained at the helm until his departure in 1992.
In December 2004, America West showed interest in acquiring a portion of ATA Airlines but ultimately did not place a formal bid.
Merger with US Airways Group
On April 22, 2005, America West Holdings initiated discussions with US Airways Group about a potential merger. The proposal involved creating a new holding company with ownership shares allocated to America West shareholders and creditors of US Airways.
The announcement on May 19, 2005 outlined plans for a merger that would establish "the nation's first full-service airline with the customer-friendly pricing of a low-fare carrier," as stated by CEO Doug Parker. The combined airline targeted annual cost savings of $600 million. Initial commitments from new equity investors—including Air Wisconsin Airways Corporation and ACE Aviation Holdings, parent company of Air Canada—totaled $350 million and were later increased to $565 million. ACE Aviation acquired a 7% equity stake for $75 million and secured a five-year contract valued at C$1.5 billion (US$1.19 billion) for maintenance and related services, positioning itself for future code-sharing partnerships with Air Canada.
The primary hubs for the merged airline were Phoenix, Philadelphia, and Charlotte; secondary hubs included Las Vegas and Pittsburgh; while focus cities covered Boston, New York, Washington, and Fort Lauderdale.
On September 13, 2005, America West shareholders approved the merger with overwhelming support of 95.5%. The US Bankruptcy Court gave its approval to US Airways’ Chapter 11 reorganization plan on September 16, enabling the merger to be finalized on September 27.
Following the merger announcement, concerns emerged in Phoenix regarding possible reductions in service at Sky Harbor International Airport. Nevertheless, management continued to be led by executives from America West based at the Phoenix headquarters despite operating under the US Airways brand.
The merger arrangement established America West Holdings as a wholly owned subsidiary under the newly formed US Airways Group through Barbell Acquisition Corporation. Ownership was divided among America West shareholders (37%), former US Airways debt holders (11%), and new equity investors (52%). Both airlines maintained their individual names until September 25, 2007, when America West’s FAA certificate was absorbed into US Airways’. By November 4, 2007, all flights operated under the US Airways code; the America West flight designator HP was discontinued, concluding operations under that brand.
Divisions
- America West Airlines
- America West Express
- America West Vacations provided bundled holiday deals that included flights, lodging, and optional car rentals, available solely for locations served by America West or its code share affiliates.