ATSB Approves Proposed AWA/US Airways Merger

PHOENIX, July 22, 2005 /PRNewswire-FirstCall via COMTEX/ -- America West Holdings Corporation (NYSE: AWA) and US Airways Group, Inc. (OTC Bulletin Board: UAIRQ) today announced that they have received approval for their planned merger from the Air Transportation Stabilization Board (ATSB). Both America West Airlines and US Airways hold loans backed by a federal guarantee from the ATSB. The carriers have been in negotiations on the treatment of those loans under their proposed merger. Pending final bankruptcy court and US Airways board approval and upon close of the merger, the two airlines' outstanding ATSB loan guarantees will be consolidated with payments beginning September 2005 through September 2010. Final terms are still being negotiated.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050223/LAW097LOGO)
America West Chairman and CEO Doug Parker stated, "We are grateful for the Board's unanimous endorsement of our proposed merger with US Airways. Today's announcement continues the positive momentum for our planned merger and brings us one step closer to building a stable future for our airlines."
"We appreciate the ATSB working closely with us to further our efforts to restructure US Airways and preserve jobs while protecting the federal government's interests. Their action today will enable the new US Airways to become a stronger and more viable airline," said US Airways President and Chief Executive Officer Bruce R. Lakefield.
In January 2002, America West Airlines, Inc. closed a $429 million loan backed by a $380 million federal loan guarantee provided by the ATSB. The current outstanding balance on this loan is $300 million. US Airways, Inc. received a $900 million loan guarantee under the Air Transportation Safety and System Stabilization Act from the ATSB in connection with a $1 billion term loan financing that was funded on March 31, 2003. The current outstanding balance of that airline's loan is $708 million.
America West Holdings Corporation is an aviation and travel services company. Wholly owned subsidiary America West Airlines is the nation's second largest low-fare carrier with 14,000 employees serving approximately 60,000 customers a day in more than 90 destinations in the U.S., Canada, Mexico and Costa Rica.
US Airways is the nation's seventh-largest airline, serving 181 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways, US Airways Shuttle and the US Airways Express partner carriers operate approximately 3,400 flights per day. (AWAG)

No competing bids proposed for US Airways

No other offers were submitted for US Airways before the July 1 deadline, Bloomberg News reported. The airline has agreed to merge with America West Airlines. The deal still needs approval from creditors and a bankruptcy court.

US Airways submits reorganization plan centered on merger

US Airways submitted its reorganization plan to a federal bankruptcy court Thursday. Submitting the plan is one of the last steps the airline must take toward emerging from bankruptcy protection. The plan involves the airline's proposed merger with America West Airlines, which would create a large, low-cost carrier.

AmWest-US Air merger's details revealed

SEC filing features items of note for investors
Dawn Gilbertson
The Arizona Republic
Jun. 29, 2005 12:00 AM

America West Airlines and US Airways weren't formally engaged until last month, but the pair began flirting well over a year ago.The long-distance courtship began in February 2004, according to new merger documents filed Tuesday with securities regulators. It was a case of opposites attracting: America West was strong on the West Coast, US Airways on the East. The airlines broke up last summer over money differences (US Airways' expenses were too high) but by the end of the year were talking about getting back together because US Airways was in better shape. They did, in January, and cemented the relationship with a merger announcement on May 19. The new airline will be based in Tempe but called US Airways. The background of the initially hush-hush merger talks was among a host of disclosures in a 386-page legal document the two companies filed with the Securities and Exchange Commission. There were no blockbuster revelations involving board dissent over the merger or competing offers or rich insider deals. One airline analyst called the document standard. Still, there were some noteworthy disclosures for shareholders to mull over as they decide whether to approve the merger later this summer:

Merger faces many risks, filing says:

Risks to the merger of US Airways and America West Airlines include the integration of corporate culture and high fuel prices, the carriers said in a regulatory filing. The merger still needs approval from a bankruptcy court and creditors.

Bad vaccine sickens 216 children

BEIJING - More than 200 Chinese children became sick and one child died after
being given an unauthorized Hepatitis A vaccine, the government said Tuesday.

Report: America West faces no serious rivals for US Airways

Just one person has publicly expressed interest in bidding this week for US Airways, the Pittsburgh Post-Gazette reported. Bids, which would rival a merger proposed by America West Airlines, are due this week. The lone bidder, Sallijo Freeman, is an Atlanta woman who says she represents an overseas investment group. The bankruptcy judge will evaluate all bids and decide on July 7; observers do not expect America West's bid to be seriously challenged.

US DOJ clears USAir/America West merger

By John Crawley
Updated: 7:41 p.m. ET June 23, 2005
WASHINGTON - U.S. anti-trust enforcers cleared the proposed merger between bankrupt US Airways and America West Airlines , saying it would be good for consumers, the Justice Department said Thursday.

America West’s CEO faces test in takeover

Doug Parker plots survival of airline in US Airways merger


The Associated Press
Updated: 4:45 p.m. ET June 17, 2005

TEMPE, Ariz. - Eleven days after taking over as chief executive of America West Airlines in September 2001, Doug Parker had to abruptly shift his focus from improving the carrier’s poor reputation among customers to fighting for its survival.

Daija wants the moon...

Last night I was reading with Daija, and after a few rounds of Chicka Chicka Boom Boom she got out another favorite... Grandfather Twilight. I read it to her once and then she flipped through a few pages. On the last page, the dog and cat pictured in the story are curled up asleep. She said to them 'Good night... I love you...' then kissed them/the book. When I read it to her again, on the first page you see the door to Grandfather Twilight's house in the trees, and she reached over and put her fist on it. I asked her if she was knocking, and then she knocked. I ask her sometimes if she can identify objects (where is the moon, where is the cat), after she pointed out to me 'him glasses' a couple months ago (there is a picture where the book he's reading at the beginning of the story is placed on a table with the glasses he was wearing on top). So anyway, instead of asking her to identify objects, I asked her on the next page, what G.T. was doing, expecting her to say something about him reading. She answered 'him sit chair' and so I asked 'What is he doing in the chair?' and she said 'him read story' babble babble 'him cat' (cat was curled up on the back of the chair). In the next two pages G.T. unlocks a chest and takes out a pearl, and she told me 'him lock' ' him keys' and 'him open.' Then the story continues without words and he walks through the forest to the beach, with this pearl growing each step. He releases it into the sky above the water. At this page, Daija reached out and pretended to snatch the big pearl from the sky and said 'gimme my moon.' I asked her if she wanted the moon, and she pretended to snatch it again and claimed it as 'her' moon. Then the story shows G.T. walking home, and when he approaches his house in the trees, Daija reaches out her fist again, and I realize that she was not knocking... she's pretending to open the door. She is developing such an imagination!

Quandary: 2005-2006 School Year

The gifted coordinator tested Halle about two weeks ago, and she scored 98+ percentile on the Ravens. Our district uses the Ravens test because it's non-verbal and less biased than most other IQ tests. The highest percentileranking is the 98th percentile, so if a child does better than that, they can't get a score of the 99th percentile... they are said to have scored 98+. Tyler took this test when he was six years, 4/5 months and in the first grade, third month? I think, and scored (pre-meds, mind you) in the 92nd percentile. Halle is 5 years, 9 months, and just finishing kinder. I had expected her to do well, but I really hadn't expected her to ceiling the test. The gifted coordinator told me she doesn't know what to do for Halle next year and suggested she and I meet with the principal. I sent the principal an email last Wednesday requesting a meeting but haven't received a response. To be honest, I don't have very high hopes of an acceptable placement. Out of the four 1st grade classes, one is a bilingual classroom (and the teacher is retiring) and one is ESL. In the two traditional classrooms, one teacher took a administrative job at another school, so there is a sub and no permanent replacement as of yet. And in August I witnessed the teacher of the other 'regular' classroom 'disciplining' two or three little boys who were being sent to lunch detention and I was really bothered by her tone and body language... as well as her volume. I didn't hear every word she said, but far more than I think I should have heard given the distance between where they were and where I was standing. I would not be comfortable working with her because that incident would always be in the back of my mind and I would always be concerned about her addressing Halle that way. And if Halle is bored now, I can't see how she'll be challenged in a bilingual or ESL classroom. Tyler was in a bilingual classroom for first grade and I felt he grew so little as a student in that environment.

Last Wednesday I also visited one of the charter schools I mentioned last month - based on what I've read at their web site it seemed to offer the most of what I would be looking for. I toured with the school's community relations person, and was really impressed with the philosophy and that the school had the student's work displayed everywhere, bio's of all the existing teachers. The staff is very diverse, which is important to our family. There are a handful of staff members who are Muslim and from the middle east (three from Turkey), one is Jewish, and another is from Venezuela... and then there is a teacher from Kansas, which from personal experience is really almost like it's own little country (or planet). They incorporate character development into their curriculum. They use Saxon Math, and let the kids go as far with it as they can. Their sixth grade students are doing calculus. No classes more than 24 students. They do math placement tests for all incoming students... with beginner/intermediate/advanced levels in each class, and offer free tutoring to get kids who are behind at grade level and to give extra attention to kids who are needing extra challenge. They have a mentor program, also free of charge.

After the visit I was thinking about it a lot more seriously. That same night, I went to the 'open house' at Julian, where Tyler is supposed to go for fourth grade. I was hoping to meet the teacher and discuss their math curriculum. I had looked at Julian's report card, and the AIMS %ile is in the teens for both 5th and 8th grade last year, and just 3 years ago was less than 10. I was further concerned to read the following, which was listed as an achievement for the 03-04 school year:

70 students in the RSD tested into Honors Algebra on the Phoenix Union School
District Math placement test. Of those, 12 were from Julian. Nine of those 12
were not enrolled in the gifted program and three of the 12 tested for placement
in Geometry.

I think this is great for the nine students from traditional classrooms, but I find it alarming that only 25% of the students were gifted. Not that there should have been fewer 'traditional' students, but that I would certainly expect for a gifted program at a school that feeds into a high school with an Aerospace Magnate, to have at least as many gifted as non gifted students achieve placement into honors math. This furthers my concern that the math curriculum for the gifted classrooms is not accelerated.

Well, the event was basically a band showcase where there was not a dedicated opportunity to meet the gifted teachers, and that it had already been performed at King Tyler had already seen the entire performance. I was even further disappointed to learn that there would not be any kind of open house for the gifted program or in general for transitioning third graders and their parents. I attempted to speak with the gifted teacher for 4th grade, and inquired about the math curriculum. She asked if I wanted to know what my child needed to know for fourth grade. I clarified that I was asking what differentiated the gifted curriculum from the traditional curriculum. I was told that there wasn't really any difference, she just usually finishes the book (I guess the other class doesn't?) I then asked what concepts she would be covering and was told that there would be a lot of review because the incoming fourth graders wouldn't be up to par in math. She assured me that this was a district wide problem and included the students coming over from King's gifted program. The other teacher (whose name I didn't catch but she may be the 'math chair') seemed to concur. Based on feedback I've gotten from multiple educators about my son's math skills, and considering that King's 3rd grade math AIMs rankings are twice that of Julian's 5th grade math rankings, I was pretty skeptical of that claim, and downright dismayed at this clear expectation/culture of mediocrity. As I pondered the futility of asking what would be done to challenge students who were not needing remediation or who excelled she invited me to visit her during her planning period at 2:15. We discussed my work schedule, she indicated she was usually on campus until five and perhaps I could come by then. I was about to suggest perhaps a conference call, when she wandered away from the conversation without excusing herself, and never returned. The other teacher remained and indicated that there would be an open house about a week before school starts. I told her very candidly that I had reservations about my son attending school there and that their math program, while the largest concern, was only one of them, and I was not comfortable waiting until school was about to begin to address them. I mentioned the excerpt I quoted above from their scorecard and expressed my concern about the complexity of the curriculum and asked why more gifted students hadn't placed into honors math. She appeared surprised, as though the disparity in the numbers hadn't occurred to her, and suggested that was a good question and one that might be good to ask the 8th grade math teacher. I didn't know whether to laugh or to cry. Preparing students for an 8th grade honors placement exam is not the sole responsibility of the 8th grade math curriculum, it begins when the child enters the school, as each grade builds the foundation for the next. I don't want to hear what is being done to prepare kids in the 11th inning! I pictured posing that question to whoever teaches 8th grade and being told that the seventh graders weren't prepared... and then that the sixth graders weren't prepared, and so on until I reached Ms. Dunn to hear that the third graders are not prepared. The phrase 'passing the buck' rang through my mind. The next morning I inquired with Tyler's current teacher specifically about his math skills, and whether a) I should anticipate that he will need remediation for fourth grade math or b) that he will languish in a classroom where most of his peers need remediation. She assured me that she felt Tyler's math skills were above par and he is well prepared for fourth grade math. She says she has never gotten any feedback indicating her students were unprepared, and that she watches their test scores and that her students have done very well in math. The teacher also indicated that she keeps in touch with several students who have gone on to Julian and has specifically inquired if there was anything that they were struggling with and that none of them have indicated having trouble with the math curriculum.

I've talked to both Joel and Ro about the school situation, and they're both open to the change. I have a few more questions for the school and I should probably visit at least one of the other schools that looked like possibilities to get a comparison. But at this point it's pretty likely the kids will be going somewhere else for school next year.

A special lunch for Halle...

Here's a cute story that a friend of mine who works for the school district sent me about Halle... Halle wasn't permitted to go on a field trip (I have no idea why, and since Halle didn't seem to care I didn't even bother to ask, I know I wouldn't have liked the answer) so our friend decided to take Halle a surprise lunch...

This morning, I went to the cafeteria and asked Ms. Cafeteria if students were allowed to bring outside food to lunch. She said yes, so I told her Halle wouldn't eat the cafeteria's meal today. She said Halle'd already paid, so she's have a credit for the next day. I also told Halle I'd bring her lunch. Well, when I got to the cafeteria with the McD's, Halle had a lunch tray. Ms. Cafeteria said Halle insisted on getting a lunch. Halle said something like this, "I paid you a dollar fifty this morning for my lunch, so I'm getting a tray. I don't think my mom's is gonna bring me a lunch because if she was, she wouldn't've given me a dollar fifty for lunch." Both Ms. Cafeteria AND her classmate tried to explain it to her, but she was insistant. LOL!! See, that would've upset the average adult as Halle being impudent (sp?), when in reality Halle's reasoning is perfectly logical.

A moment of silence...

With all the sadness and trauma going on in the world at the moment, it is
worth reflecting on the death of a very important person, which almost went
unnoticed last week.

Larry LaPrise, the man who wrote "The Hokey Pokey," died peacefully at
age 93. The most traumatic part for his family was getting him into the coffin.
They put his left leg in.... And then the trouble started.

it's OK to laugh, you know it's funny.

AmWest, US Airways to merge

Of course this is by no means final, but it looks like we're moving ahead on this. A couple people have expressed concern for me and my job... my mama wanted to know if I'd have to move to DC. Right now I'm not worried about my job, or needing to relocate anytime soon. While the merger plan is official, the current plan doesn't have the airline fully integrating until 2008, and that's if all the powers that be approve everything that needs approving.

AmWest, US Airways to merge
Dawn Gilbertson
The Arizona
Republic
May. 19, 2005 02:20 PM

After weeks of nonstop speculation about their hush-hush marriage talks, America West Airlines and US Airways became officially engaged today, seeking to create the nation's fifth largest airline.

The two major carriers this afternoon said they plan to merge in a complex, $1.5 billion deal that will have the new airline based in Tempe but flying under the US Airways banner. America West Chairman and CEO Doug Parker will run the airline, which will have hubs on both coasts and a route map spanning the world.

No details were provided on the impact on employees or flights at either airline, but the companies said the airlines will operate separately for two to three years.

The backers of the deal many thought would never get off the ground financially include the parent of Air Canada, Boston-based investment firm PAR Capital Management, regional carrier Air Wisconsin and industry players Airbus and General Electric.

In their first public comments about the motivation for the deal, Parker and US Airways CEO Bruce Lakefield said the deal will create the first full-service nationwide low-cost, low-fare airline.

"Through this combination we are seizing the opportunity to strengthen our business rather than waiting for the industry environment to improve," said the written statement.

More details are expected in a media conference call and news conference at the Airline's Tempe headquarters. America West's stock, which was beaten up after word of the merger talks leaked, rose sharply today in expectation of announcement. The stock closed at $4.81, up 8.6 percent from Wednesday's close. After hours trading was halted pending the news.

For Phoenix, the merger would mean a national, homegrown brand falls off an
already short list of marquee names in business. But the area gains a much larger corporate headquarters, in terms of prestige, total employees and other measures. Based on last year's revenue of $9.4 billion for the combined company, the new US Airways would rank as Arizona's second-largest publicly company, after Fortune 500 electronics distributor Avnet Inc.

The deal is by no means done. There are a host of approvals to get, including the federal Air Transportation Stabilization Board, which loaned both airlines money after Sept. 11 and is still owed nearly $1 billion from the two; U.S. Airways' bankruptcy judge; federal regulators and shareholders.

There was skepticism from Wall Street, competitors and others as soon as word of the merger talks leaked last month, and the scrutiny is only expected to intensify now that some specifics are on the table. Analysts worry about the wisdom of combining two financially weak carriers during an industry crisis that is expected to produce $5 billion in losses this year.

The president of Southwest Airlines has said the CEOs of the two airlines must be on drugs to contemplate a merger in this horrible airline environment.

David Neeleman, CEO of discounter JetBlue Airways, the only other profitable airline besides Southwest, joked at an aviation conference last month in Phoenix that Parker has started drinking his own Kool-Aid. That was a reference to Parker's repeated comments over the past year that the industry was ripe for consolidation.

The merger will form the centerpice of US Airways' reorganization plan. The airline filed for Chapter 11 bankruptcy protection last fall, a year after it emerged from its first Chapter 11 reorganization.

The combined company has nearly 38,000 employees, though it's unlikely the count will stay that high due to duplicate headquarters staff and the plan for fewer aircraft than the 419 jets they operate now in total.

Many observers expect the thorniest issue to be integrating the carrier's union workforces. Seniority rules at unions, and US Airways workers have much more than those at significantly younger America West. At America West's annual shareholders meeting Tuesday, America West union representatives grilled Parker about whether their jobs will be safe in a merger. Parker has said only that he wouldn't do a deal that jeopardize the he hard work America West's employees.

By any measure, America West is combining with a much larger carrier. US Airways'
sales last year were triple America West's, at $7.1 billion. The two rank 7th and 8th in passenger traffic, but the gap is wide: 40.5 million revenue passenger miles versus 23.3 million. They rank sixth and eighth in passenger boardings, but US Airway's passenger count is double America West's, at 42 million.

Reach the reporter at dawn.gilbertson@arizonarepublic.com or 602-444-8617

AmWest deal looming

Dawn GilbertsonThe Arizona RepublicMay. 18, 2005 09:48 PM

Signals were mixed Wednesday on whether America West Airlines and US Airways will announce their merger today as planned.

But there was a clear sign an announcement could be imminent: US Airways CEO Bruce Lakefield was booked on an early morning flight to Phoenix.

Lakefield, who has led the bankrupt carrier since April 2004, is due into Sky Harbor International Airport this morning on an America West flight, sources familiar with his travel plans say. His reservation calls for a one-day stay with a departure late tonight.

The merger discussions largely have taken place in Washington, D.C., so his expected presence in Arizona today is notable. Assuming his travel plans didn't change overnight, Lakefield will arrive as America West's board of directors is meeting. The board has to approve any proposed transaction. US Airways board met on Wednesday.

New name for a new airline?

America West, US Airways may get new name: If US Airways and America West Airlines merge, officials will choose a name for the combined airline. One marketing expert suggested rebranding the combined airline because of recent customer service snafus at US Airways and limited recognition for the America West brand, the Arizona Republic reports. The Arizona Republic (Phoenix) (5/18)

America West, US Airways may announce merger today, report says

America West and US Airways have secured a vital loan from jetmaker Airbus and may announce merger plans as early as today, the Wall Street Journal reports, quoting unnamed sources. Meanwhile, the chairman of US Airways said the talks between the two carriers are not likely to collapse. The Wall Street Journal (subscription required) (5/19), The Charlotte Observer (N.C.) (free registration) (5/19)

Real ID

Doesn't this look fabulous and exciting and well worth all the money it's going to cost to implement...

Survival of US Airways depends on merger with America West

The survival of US Airways depends on whether it will merge with America West Airlines, the Washington Post reports. One unnamed executive said the carrier does not have many options outside of a merger. The two airlines may reach a merger agreement later this week, according to media reports.

AmWest, US Air deal likely soon

Weeks of speculation about an America West Airlines-US Airways merger should give way to straight facts this week, with a formal announcement of the deal tentatively set for Thursday.

http://www.azcentral.com/business/articles/0516amwest16.html