America West Holders OK Merger

The company moves closer to completing the deal with U.S. Airways.
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America West

(AWA)

shareholders have given a thumbs-up to the Phoenix-based airline's pending merger with

US Airways

(UAIRQ)

America West said holders of more than 95% of its total voting shares approved the merger, keeping the deal on track to close at the end of this month.

The two airlines announced the merger on May 19, saying it would create a full-service nationwide airline with discount prices. The plan would significantly increase America West's scale and lift US Airways out of Chapter 11 bankruptcy protection.

Analysts have said the merger faces significant challenges, including meshing two labor groups with different seniority levels.

America West shares were down 11 cents, or 1.5%, to $7.21. US Airways shares, which will be canceled and rendered worthless when the merger closes, slid a penny to 26 cents.