WASHINGTON — USAir today announced an agreement to buy Pacific Southwest Airlines for $400 million in a deal that would create the sixth largest passenger carrier in the nation with 20,000 employees.
Edwin Colodny, chairman and chief executive officer of USAir Group, said the transaction still needs approval by shareholders and the Department of Transportation. Colodny said he anticipates "no significant opposition" and expects the deal to be completed during the first quarter of 1987.
USAir, with headquarters in Washington and a hub in Pittsburgh, is the nation's No. 8 airline in terms of passengers flown, serving 78 airports in 31 states and Canada. It has a work force of 15,000 and a fleet of 147 aircraft.
No. 10 PSA, with 5,000 employees, is a particularly strong force in the California market and serves 29 airports in six Western states and Mexico with 55 planes.