US Airways Group Inc. and America West Holdings Corp. announced on Thursday that the two companies have agreed to merge.

The combined new company will operate under the name of US Airways and will be funded by 1.5 billion dollars in new capital from a variety of investors, including European aircraft maker Airbus.

US Airways Group Inc. and America West Holdings Corp. are the seventh and eighth largest carriers in the United States and US Airways has been struggling in great difficulties in recent years.

The goal of the merger is to stitch together two geographically distinct carriers with a history of financial struggles into a stronger airline that would compete better with lower-cost rivals.

Source: Xinhua