America West Lays Off 500

America West Airlines is laying off 500 workers, including half of its mechanics, and will have major aircraft maintenance done by a contractor.

The airline denied rumors that it is considering a merger with another airline in connection with the layoffs, which began Friday.

Major maintenance will be performed by Tramco of Everett, Wash., a division of BF Goodrich Co., the company said.

The America West Express flights serving Spokane are operated on a contract basis by Mesa Air Group and should not be directly affected by the moves.