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US Airways'

( UAIRQ) plan to exit Chapter 11 via a merger with

America West

( AWA) has received the blessing of the bankrupt airline's creditors.

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US Airways announced the development Wednesday, a day after America West stockholders approved the merger, keeping it on track to close at the end of this month. The final hurdle is now confirmation by the bankruptcy court.

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 its second trip through bankruptcy since the Sept. 11 terrorist attacks.

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

America West shares fell 7 cents, or 1%, to $7.01. US Airways shares, which will be canceled and rendered worthless when the merger closes, slid 7 cents to 19 cents.