ACE Aviation Holdings, the Canadian parent of Air Canada retained a roughly 6.1% investment stake in US Airways Group.

[7][10][11] In August 2002, US Airways Group Inc. filed for bankruptcy protection in an effort to correct its financial problems brought on by rising costs and the post-Sept. 11 drop-off in air travel.

[13] At the time of announcement, plans called for the new entity to retain the US Airways brand, its Dividend Miles frequent flyer program, and participation in the Star Alliance (subject to the approval of partner United Airlines); however, it would be headquartered at America West's corporate offices and America West executives and board members would be in control of the merged company.

US Airways Group had obtained a firm commitment from Citibank to provide financing for both the cash portion of the merger offer, as well as the required secured loan refinancing at both airlines.

A rally against the US Airways merger at the Georgia International Convention Center was held December 13, 2006, and attended by nearly 3000 pilots, family members, and other supporters.

[15] On January 31, 2007, following a decision by the creditors committee to support Delta's standalone reorganization plan, US Airways withdrew its merger offer.

In July of that year, in a Bankruptcy Court filing US Airways disclosed that it was an American Airlines creditor and "prospective merger partner.

"[19] On February 14, 2013, US Airways Group and AMR Corporation officially announced that the two companies would merge to form the largest airline in the world.