US The relocation of Airways will not severely damage the state's economy

The relocation of US Airways will not severely damage the state's economy (Alberta Times) Arizona Governor Brewer said that with US Airways and...

(Alberta Times)

Arizona Governor Brewer said that with the merger of US Airways and American Airlines, US Airways moved out of Arizona to Texas, which will have a certain impact on the state's economy, but will not plunge the state into a quagmire.

The governor said she met with US Airways CEO Parker, who assured her that although the headquarters was leaving Phoenix, Phoenix would still serve as an important hub for the new combined company and thousands of business jobs would remain.

According to reports, Tempe-based US Airways and American Airlines parent company AMR Group will finalize the merger within a week or two to create the world's largest airline company in terms of passenger traffic.

However, the report quoted sources as saying that the deal is still likely to collapse because American Airlines has expressed its desire to remain independent after emerging from bankruptcy protection, and the issues of board seats and management risks still need to be resolved.

The deal being negotiated would give American Airlines' creditors about 72% of the new company's shares, with US Airways receiving the remaining 28%.