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Seabury Group Serves as Financial Advisor on Proposed Merger of US Airways and America West - $350 Million of Equity Raised

NEW YORK, May 19, 2005 –Seabury Group today announced that it served as financial advisor to US Airways Group, Inc. in its proposed merger with America West Holdings Corporation. As part of its advisory, Seabury arranged $350 million of equity. Seabury has been serving as restructuring advisor to US Airways in its Chapter 11 restructuring since 2004.

The $350 million of new equity is expected to be provided by four separate investor groups:

ACE Aviation Holdings Inc., ($75million commitment) a Canadian holding company that owns Air Canada , Canada ’s largest airline with over $7.5 billion in annual revenues;
PAR Investment Partners, L.P., ($100million commitment) a Boston-based investment firm;
Peninsula Investment Partners, L.P., ($50 million commitment) a Virginia-based investment firm; and
Eastshore Holdings, LLC, ($125 million commitment and agreement to provide regional airline services), which is owned by Air Wisconsin Airlines Corporation and its shareholders.

The merged company also plans to conduct a rights offering that could provide an additional $150 million of equity financing.

The merger is expected to create one of the industry’s most financially stable players, with over $10 billion in annual revenues and a strong balance sheet that includes approximately $2 billion in total cash at closing with which to weather the current industry environment and fund further growth strategies. The airline’s strong cash balance is expected to be created through a combination of current cash on hand at US Airways/America West, the $350 million of new equity commitments (which may be supplemented with additional commitments), and proceeds from a contemplated $150 million rights offering. In addition, the merged airline will receive cash infusions of over $1.1 billion, principally from partners and suppliers (approximately $675 million), asset-based financings or sales of surplus aircraft (approximately $250 million) and release of certain cash reserves (approximately $200-300 million).

In addition to its current work with US Airways Group, Seabury Group served as principal restructuring advisor and sole investment banker for the company in its 2003 Chapter 11 restructuring. Seabury also served as financial advisor to America West in its out-of-court restructuring in 2002.

In 2003-2004, Seabury served as Air Canada ’s financial advisor under the Companies’ Creditors Arrangement Act (CCAA) and as financial advisor to Avianca, a Colombian airline, in its restructuring under Chapter 11. Additionally, Seabury handled corporate restructuring assignments for Continental Airlines, Inc. in 1995.

Founded in 1995, Seabury Group provides investment banking, financial advisory, restructuring and consulting services primarily for transportation companies and those in related industries. With more than 75 professionals in the United States and Europe , Seabury has one of the largest investment banking, restructuring, and management consulting practices in the world dedicated to the transportation sector.

For more information, please see: http://www.seaburygroup.com