code share at first?.......
"The deal is more or less done and will be announced next week," said the source on condition of anonymity. "It will most likely be done in stages, possibly as a code-share first."
Staging the deal would give US Airways more time to further align its costs with America West, a goal the seventh-largest airline has expressed since entering bankruptcy in September for the second time in two years.
"There is a lot they could do without investing a lot," said Michael Boyd, a Colorado-based aviation consultant.
Boyd and other industry observers say a careful but imaginative deal done in stages makes more sense than an outright merger because putting the two companies together immediately would not reduce overcapacity -- a reason why airlines are losing billions each year.
Time is critical for US Airways and airline mergers can also involve protracted union negotiations.
"You are dealing with people who are innovative thinkers," Boyd said of America West chief executive Doug Parker and other people said to be involved in the discussions.
Most observers agree that US Airways would have to shrink further to bring costs more in line with America West's. Moreover, airline mergers have typically resulted in higher costs for the acquiring company.
Another potential signal that a deal could be close, US Airways filed a court motion this week seeking bonuses and severance enhancements for more than 1,800 management and other salaried workers to keep them in place during any transition.
US Airways said a merger "would be mixed news" for its executives and other salaried workers because a deal could result in a "material reduction" in their ranks. The airline said an exodus of key employees could cripple the company and scratch any deal.
link here
"The deal is more or less done and will be announced next week," said the source on condition of anonymity. "It will most likely be done in stages, possibly as a code-share first."
Staging the deal would give US Airways more time to further align its costs with America West, a goal the seventh-largest airline has expressed since entering bankruptcy in September for the second time in two years.
"There is a lot they could do without investing a lot," said Michael Boyd, a Colorado-based aviation consultant.
Boyd and other industry observers say a careful but imaginative deal done in stages makes more sense than an outright merger because putting the two companies together immediately would not reduce overcapacity -- a reason why airlines are losing billions each year.
Time is critical for US Airways and airline mergers can also involve protracted union negotiations.
"You are dealing with people who are innovative thinkers," Boyd said of America West chief executive Doug Parker and other people said to be involved in the discussions.
Most observers agree that US Airways would have to shrink further to bring costs more in line with America West's. Moreover, airline mergers have typically resulted in higher costs for the acquiring company.
Another potential signal that a deal could be close, US Airways filed a court motion this week seeking bonuses and severance enhancements for more than 1,800 management and other salaried workers to keep them in place during any transition.
US Airways said a merger "would be mixed news" for its executives and other salaried workers because a deal could result in a "material reduction" in their ranks. The airline said an exodus of key employees could cripple the company and scratch any deal.
link here
