America West Reportedly to Seek States’ Aid : Transportation: The Phoenix-based carrier is expected to argue that Arizona and Nevada could lose its 9,000 employees.

Financially ailing America West Airlines reportedly plans to ask the states of Arizona and Nevada for large amounts of financial aid.

The Phoenix-based airline’s top executives contend that they must obtain government financial incentives, which could total “tens of millions of dollars,” if America West is to remain competitive with airlines that are getting large aid packages from other states, according to a report in the Arizona Republic.

State financial aid to airlines has become commonplace in recent years. Colorado, for example, has offered United Airlines bond financing to build a regional maintenance facility in the state. Northwest Airlines decided to locate a new jet maintenance facility in Minnesota after the state agreed to issue $350 million worth of bonds to finance construction.

An America West spokesman said Monday that a request for state aid might be one of the alternatives in the airline’s financial restructuring. But “there have been no talks and no proposals with the states and this has been blown out of proportion,” the spokesman said.

The airline is expected to argue that it employs 9,000 in Arizona and Nevada, and both states would be hard-pressed if those jobs were lost. America West has major hubs in Phoenix and Las Vegas.

America West recently suspended payments to its aircraft suppliers, and it also said it would not make its July 1 interest payments to some of its lenders.

It has vehemently denied industry speculation that it is on the verge of bankruptcy and says it is restructuring some loans. Some analysts say the airline will survive, while others predict its doom.