Merger with America West

U.S. Airways, Inc.

Our attorneys represented US Airways in its merger with America West, a merger that created the first nationwide full service low-cost airline. The merger was announced publicly on May 19, 2005 and received a wide range of international coverage.

The transaction was financed with approximately $1.5 billion of new capital from $350 million of committed new equity plus a planned rights offering; more than $675 million from partners and suppliers; $250 million or more from aircraft-related financings; and a release of $200-$300 million in cash reserves. The combination formed one of the industry's most financially stable airlines with $10 billion in annual revenues, approximately $2 billion in total cash and among the lowest debt levels of all major airlines.

The merger was subject to approval by the US Bankruptcy Court overseeing US Airways' pending Chapter 11 case and other regulatory approvals. The merged airlines now operate under the US Airways brand under the leadership of then America West CEO Doug Parker.

The firm has been the lead counsel to US Airways in its bankruptcy proceedings since April 2004.

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