PHOENIX -- America West Airlines announced Friday it had replaced its long-time president and chief executive officer Michael J. Conway, who had feuded with Chairman William Franke.
The airline board, in a specially scheduled four-hour meeting, filled Conway's president post by A. Maurice Myers, who has been president for Aloha Airlines for the past decade. Conway's CEO post will be filled by Franke.
Franke refused to comment on whether Conway was fired or stepped down voluntarily, but he indicated the board wanted Conway to move on.
'We felt strongly it was the time for new ideas,' Franke said in an interview. 'That meant we had to make room for Maury.'
Myers, 53, has served since 1985 as the president and chief executive officer for Honolulu-based Aloha and has been with Aloha since 1983. From 1975 to 1982, he held various financial and marketing positions at Continental Airlines.
Reports of a rift between Conway and Franke had emerged as several investor groups explored the possibility of buying the carrier, which has been in bankruptcy since mid-1991 but has posted improved performance this year.
Conway, who had been executive with the airline since its founding a decade ago, was reported as backing a bid by AWA Partners, an investment group including the Pritzker family. That group decided last week to withdraw from making an offer to buy the carrier.
America West said recently that two other unidentified investors are actively continuing to evaluate a possible purchase through the bankruptcy court with an infusion of as much as $250 million by a Feb. 10 deadline.
Franke said Friday he expected more bids to emerge by the deadline. The Phoenix-based carrier has until then to accept bids or come up with its own reorganization plan.
The company is currently soliciting bids from interested investor groups and, last week, received an offer of $250 million for 80 percent of the company's equity from SteinhardtManagement, a New York money management firm.
Franke said Myers will oversee the day-to-day operations of America West, which has been posting strong results in recent periods. Its November traffic was 954.3 million revenue passenger miles, up 13 percent from November 1992 and the load factor for the month improved to 66.7 percent from 58.5 percent.
The airline, which filed for Chapter 11 federal bankruptcy in June 1991, slashed operations last year to focus on profitable niche routes. It has been in the black for all three quarters of this year, earning $26.8 million, or $1.08 a share, in the first nine months of this year, compared with a a $114.1 million loss in the year-ago period.
Between 1990 and 1992, it racked up more than $400 million in losses.
