America West Plan Approved

America West Airlines on Wednesday said it had received court approval for a crucial $155-million financing and marketing plan that will allow it to remain operating while it tries to reorganize under bankruptcy court protection.

The Phoenix-based airline, which filed for Chapter 11 bankruptcy court protection in June, said most of the financing will come as $100 million in deferred payments on its airplane leases. The payments will be deferred until Dec. 1.

GPA Group, an airline leasing and financing firm, will provide an additional $35 million in loans, while Northwest Airlines will put up $20 million under the measures approved by a U.S. bankruptcy court judge in Phoenix. In addition, some of America West’s flights will be included in Northwest’s reservation systems.

The plan is intended to give America West cash it badly needs and to ensure that the carrier will have enough jets to maintain its routes. The carrier has already cut its flight schedule as part of a $100-million plan to reduce costs and raise revenues.

America West spokeswoman Daphne Dicino said the carrier will work on a reorganization plan to emerge from bankruptcy. That plan must be approved by creditors and the bankruptcy court.