Shares of America West Holdings gained more than 5 percent on Friday amid talk that the airline may be a takeover target for Alaska Air Group.

BusinessWeek reported in its online edition that Alaska Air Group, parent of Seattle-based Alaska Airlines, may make a bid for America West, which itself has proposed a merger with bankrupt US Airways. The magazine attributed the information to Vincent Carino, president of Brookhaven Capital Management.

Alaska Air Group, however, said in a regulatory filing on Friday that it has no plans to get involved in the proposed merger of America West and US Airways.

One analyst linked the rise in America West stock to the merger speculation. Shares of America West were up 30 cents at USD$6.45 on the New York Stock Exchange in afternoon trade.

"That's the only thing I can think of, if America West is up," said Ray Neidl, an analyst at Calyon Securities. "That usually would boost the price of the stock if there were potential bidders."

Alaska Air shares, meanwhile, declined 73 cents, or 2.4 percent, to USD$29.72 on the New York Stock Exchange.

Phoenix-based America West last month said it intended to buy US Airways in a bid to compete with low-cost rivals.