US Airways filed a new business plan with a Virginia bankruptcy court on Thursday, and said it was on track to complete its merger with America West Airlines by autumn.

US Airways said in the filing submitted nearly 10 months after entering Chapter 11 that creditors with claims of USD$50,000 or less will receive a cash payment equal to 10 percent of their claim.

Creditors holding unsecured claims, including federal pension insurers and the pilots' union, will receive stock in the reorganized company. The value of their shares will vary.

The merger will be anchored by USD$500 million in equity commitments proposed by five investors as well as other potential financing sources still being negotiated. The potential value of the deal is more than USD$1.5 billion.

The deadline for submitting competing bids to the America West deal or US Airways assets -- including aircraft or airport slots -- expires at 5 p.m. EDT on Friday.

The US Bankruptcy Court for the Eastern District of Virginia will consider the airline's reorganization statement at an August 9 hearing.

The carrier said it plans to close on the merger by late September or early October. Combining the companies could take more than two years.

US Airways has until October 31 to step out of court protection.