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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): December 2, 1995
AMERICA WEST AIRLINES, INC.
(Exact name of registrant as specified in charter)
Delaware 1-10140 86-0418245
(State or other jurisdic- (Commission (IRS employer
tion of incorporation) file number) identification no.)
4000 East Sky Harbor Boulevard, Phoenix, Arizona 85034
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (602) 693-0800
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
The information set forth in the press release of the registrant dated
December 2, 1995, which is filed as an exhibit hereto, is incorporated by
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
99.1 Press Release dated December 2, 1995
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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, thereunto duly authorized.
AMERICA WEST AIRLINES, INC.
By /s/ W. Douglas Parker
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W. Douglas Parker
Senior Vice President and
Chief Financial Officer
December 4, 1995
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EXHIBIT INDEX
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EXHIBIT NO. DESCRIPTION
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99.1 Press Release dated December 2, 1995
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Exhibit 99.1
_________________________________________________PR NEWSWIRE NEWSFAX
AMERICA WEST AIRLINES TO OUTSOURCE HEAVY MAINTENANCE
PHOENIX, Dec. 2 /PRNewswire/ -- America West Airlines (NYSE: AWA)
announced that its Board of Directors has approved a proposal, effective
immediately, to outsource its heavy aircraft maintenance to Tramco, a division
of The BFGoodrich Company, in Everett, WA. The outsourcing is estimated to save
the Company approximately $35 million over the five-year term of the
arrangement.
The decision will reduce by one-half the Company's base maintenance
work force of approximately 1,000 employees. Approximately 470 maintenance
employees will be retained to perform and supervise line maintenance.
"While we believe that this is the correct strategic decision, it is
difficult and painful because jobs must be eliminated," said W.A. Franke,
chairman and chief executive officer. "We have attempted to assist the affected
employees by offering generous transition pay and benefits as well as extensive
outplacement assistance."
"In addition to the financial benefits to America West, Tramco offers a
proven reputation for safety, quality and the capacity to meet our work
schedule," said Thomas F. Derieg, senior vice president of operations. "Tramco
has performed modification, introduction and transition maintenance for America
West in the past 24 months. Its history of performance for America West and
other airlines has been excellent. Tramco operates one of the largest airframe
maintenance, repair and overhaul facilities in North America. Tramco is
FAA-approved and audited, and all the work will conform to America West's
specifications."
Since emerging from bankruptcy, America West has focused on its core
business of transporting passengers. To that end, the Company has already
outsourced catering, aircraft cleaning, audiovisual and certain security
functions. Several of America West's competitors, including Southwest,
Continental, United, Delta, Alaska, Reno Air, ValuJet, Western Pacific,
Frontier and Kiwi, outsource all or part of their heavy maintenance operations.
"This decision provides a significant positive financial impact while
assuring cost-effective management of our heavy maintenance as the Company's
fleet and operations grow," said W. Douglas Parker, senior vice president and
chief financial officer. "Maintaining our low-cost advantage relative to our
competitors is imperative to America West's financial security now and in the
future."
Costs associated with the outsourcing of heavy aircraft maintenance
will result in a nonrecurring charge against fourth quarter operating income
and earnings of approximately $10.5 million.
The reduction of approximately 500 employees will include technicians,
inspectors, managers, supervisors, engineers and employees in support roles such
as human resources, information systems, payroll and purchasing.
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On average, transition arrangements -- including forecasted AWArd Pay,
performance awards based on achievement of Company operating income goals for
1995 paid to all eligible technical employees, including those inactive
employees released as a result of the outsourcing -- will offer an employee with
six or more years of experience about 56 percent of annual salary or about 35
percent of annual salary if the employee has less experience. Immediate job
placement and career counseling assistance, including America West-sponsored job
fairs, resume preparation and interview skills development, will also be
provided.
"As we attempt to mitigate the individual effect on our employees, we
are also mindful of the impact on the local economy," Franke said. "We firmly
believe that the short-term consequences to the Phoenix area will be more than
offset by the Company's increased financial stability, which, in turn, supports
our recently announced two-year growth plan, which is expected to add between
800 and 900 jobs to our Phoenix operations."
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/CONTACT: Michael Mitchell, Manager - Corporate Communications, of
America West Airlines, 602-693-5732/
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