America West-US Airways: scepticism over 'Project Barbell'

摘要

US Airways and America West (AWA), the seventh and eighth largest US carriers, confirmed recently, in response to press speculation, that they are in discussions regarding a potential merger. No details have been disclosed, but press reports citing "people familiar with the talks" have suggested that the idea is to create a new national, AWA-managed LCC that would rival Southwest in size. Such a deal would effectively rescue US Airways, which needs additional equity funding for Chapter 11 exit but is struggling to come up with an acceptable business plan in the current high fuel cost environment.