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America West fields offers
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January 20, 1999: 9:46 p.m. ET
United Airlines discloses it made acquisition proposal to competitor
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NEW YORK (CNNfn) - The music may be starting again for the airline alliance waltz.
America West Holdings Corp. said late Wednesday it had been approached by "a number of airlines expressing interest in possible transactions."
United Airlines was the first suitor to step forward and confirm it had expressed interest.
America West (AWA), the corporate parent of America West Airlines of Phoenix, Ariz., said the offers ranged from a strategic alliance to a merger or similar combination.
The company did not name the airlines that had approached it, and it said it would have no further comment until it had entered an agreement or decided not to make a deal.
A spokesperson for America West was not immediately available.
United Airlines of Chicago, the main operating unit of UAL Corp. (UAL), issued a statement shortly afterward saying it had "expressed to America West Airlines an interest in a possible acquisition of America West."
A spokesperson for United Airlines could not be reached.
The disclosures, coming hours after America West reported better than expected fourth-quarter earnings, could signal renewed interest in alliances in the industry.
Last year featured a spate of such combinations, ranging from code-sharing arrangements to more far-reaching accords. But the activity slowed in the fall, after the U.S. Justice Department signaled objections to a proposed alliance between Northwest Airlines (NWAC) and Continental Airlines (CALB), under which the No. 4 industry leader Northwest would have taken a controlling interest in No. 5 Continental. Earlier this month, the two airlines announced a more modest code-sharing pact.
UAL is expected to report its results on Thursday.
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