Companies to cut overhead expenses

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Wednesday, Aug. 17, 2005 | 9:54 a.m.

US Airways Group Inc., which plans to merge with America West Airlines, expects to cut overhead expenses by 35 percent as it reduces the number of executives at the combined company. America West's Derek Kerr was named chief financial officer.

The new airline would have 34 officer positions, compared with 52 currently at both companies, Arlington, Va.- based US Airways said Tuesday in a filing to the U.S. Securities and Exchange Commission.

US Airways plans to join its East Coast operations with America West's mainly western network, challenging Southwest Airlines Co. Douglas Parker, the chairman and chief executive of America West, will run the new company, to be called US Airways and based in America West's corporate home near Phoenix.

US Airways shares slipped 3 cents, or 5.9 percent, to 48 cents in over-the-counter trading. America West shares added 3 cents, or 0.4 percent, to $7.99 in New York Stock Exchange composite trading Tuesday.