SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): February 24, 1994
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AMERICA WEST AIRLINES, INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-10140 86-0418245
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(State of Incorporation) (Commission File No.) (I.R.S. Employer
Identification No.)
51 W. Third Street
Tempe, Arizona 85281
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(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (602) 693-0800
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Item 5. Other Events.
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On February 24, 1994, America West issued the press
release, attached hereto as an exhibit, reporting that its
Board of Directors unanimously selected AmWest Partners,
L.P. as the lead investor in the Company's bankruptcy
reorganization.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
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Exhibit No. Description
__________ ___________
99 Press Release of the Company dated
February 24, 1994
SIGNATURES
__________
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
AMERICA WEST AIRLINES, INC.
Date: February 28, 1994 By /s/ Alphonse E. Frei
______________________________
Alphonse E. Frei
Senior Vice President-Finance
<PAGE>
AMERICA WEST BOARD OF DIRECTORS
SELECTS AMWEST PARTNERS AS LEAD INVESTOR
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PHOENIX, AZ (FEB.24) (NASDAQ:AWAQC; PSE:AWA) -- The America
West Airlines Board of Directors announced today that it had
unanimously selected AmWest Partners, L.P. as the lead
investor in the Company's bankruptcy reorganization. AmWest
Partners is a limited partnership led by Air Partners, L.P.
and includes as investors Continental Airlines, Inc., Mesa
Airlines, Inc., and Fidelity Investments.
"After carefully considering all the factors it was the
Board's judgment that the AmWest Partners bid was superior to
other alternatives," said Bill Franke, America West Airlines'
Chairman of the Board. "AmWest's bid contemplates a strategic
alliance which would result in an independent America West
Airlines headquartered in Phoenix, and affiliated with a
global partnership. Under this proposal, America West will
emerge from bankruptcy with a strong balance sheet and healthy
cash reserves," Franke said.
Franke said the AmWest Partners bid would provide America
West with $100 million of new long-term unsecured debt and
$120 million of new equity in exchange for a minority
ownership interest in an reorganized America West.
In addition to the 37.5% interest in the reorganized company
that AmWest would receive, other interests would receive the
following:
One secured creditor in exchange for
certain concessions 7.5%
Unsecured creditors 45.0%
An additional 10% of the Company's common stock (the
"Contingent Stock") would be available to the Company's
existing common stockholders if (and to the extent that) the
proposed America West plan of reorganization would result in
the unsecured creditors receiving full recovery of their
claims. To the extent that the Bankruptcy Court is unable to
make this determination, the contingent stock would be placed
in trust and, one year later, would be distributed to the
unsecured creditors and/or equity holders depending on whether
(and to the extent that) the market price at such time of the
shares of reorganized America West's common stock distributed
to the unsecured creditors had indicated that the unsecured
creditors had received full recovery of their claims.
In addition, both the Company's equity holders and AmWest
Partners would receive warrants to purchase 5% of the
reorganized Company's common stock. The exercise price of
these warrants would be set at a level such that they would
not be exercised until after the unsecured creditors would
received full recovery of their claims.
Finally, equity holders would be granted the right to invest
$15 million in new money in the reorganized America West at
approximately the same price as AmWest Partners.
The alliance also would result in Continental and America
West cooperating in a broad range of marketing and operational
areas, including code sharing arrangements, combined frequent
flier programs, and strengthened sales and marketing presence
for each carrier.
An Air Partners spokesman said the alliance should result in
additional traffic at Sky Harbor Airport, strengthening its
role as a regional hub and providing the opportunity for more
jobs for the Phoenix, area.
In a statement, Air Partners said: "We believe our proposal
provides benefit for all concerned. Our estimates indicate
that this strategic alliance will improve America West's
operating income materially and we expect as investors and as
affiliated carriers to enjoy these synergistic economic
benefits."
Franke said the companies' route structures were
strategically complementary, strengthening America West's
system in the west and southwest. Continental's system in the
east, northeast, southeast, as well as in the southwest and
Mesa Airline's existing role as an AWA Express operator.
The Boards's decision will be presented to the U.S.
Bankruptcy Court for its approval in the near term, Franke
said.
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