U.S. Airways and America West jets await take-off from Sky Harbor International Airport Thursday, May 19, 2005 in Phoenix.

US Airways Group Inc. and America West Holdings Corp., the nation's seventh and eighth largest carriers, are merging to create an airline designed to better compete with lower-cost competitors.

The combined company will fly as US Airways and would become the nation's sixth largest airline. It will be funded by $1.5 billion in new capital from a variety of investors, including aircraft maker Airbus.

The goal of the merger is to stitch together two geographically distinct carriers with a history of financial struggles into a stronger airline that would compete better with lower-cost rivals such as Southwest Airlines Inc. and JetBlue Airways Corp. US Airways has a strong presence on the East Coast, and in the Caribbean, while America West operates across the West from hubs in Phoenix and Las Vegas.

The airlines plan to merge their frequent flier programs, with current members retaining their full mileage balances.

Doug Parker, chief executive and president of America West Holdings, called the combined company "the first nationwide, full-service, low-cost airline."

"These two airlines are so much stronger together," said Parker, who will become CEO of the new company.

Financing for the deal includes a $250 million loan from European jet maker Airbus. In return, the merged company will serve as a "launch customer" for Airbus' new A350 jet, with deliveries scheduled from 2011 to 2013. The companies did not disclose the number of new jets to be ordered.

The new company will be based in Tempe, home of America West.

US Airways President and CEO Bruce Lakefield said the merger will ensure US Airways' long-term viability and the security of its employees.

Parker said he was not sure how many jobs would be cut if the merger goes through. US Airways employs about 30,000, including 600 at its headquarters in Arlington. America West employs about 14,000.

"I don't anticipate any major furloughs over and above" those that have already been occurring Parker said.

Jack Stephan, spokesman for the US Airways unit of the Air Line Pilots Association, said the union is "looking forward to being a part of the creation of the nation's premier low-cost airline."

US Airways once had some of the highest-paid employees in the industry, but several rounds of pay cuts reduced salaries to those found at America West, which has pay scales at the lower end of the industry average.

Under the merger deal, the companies would return a combined 59 jets to their lessor, reducing the airlines combined fleet size by about 15 percent, Parker said.  

(Agencies)

viability: capable of become practical and useful（生存能力)

furlough: leave of absence; especially, leave given to an officer or soldier to be absent from service for a certain time（休假；暫時解雇）