2 Airlines Agree to $12-Million Merger

A small regional airline that started operating in June from Southern California to Las Vegas and Reno announced Wednesday that it is being bought by another small regional carrier that began service little more than a week ago.

Royal West Airlines of Las Vegas said it is being purchased by StatesWest Airlines of Phoenix for restricted stock of StatesWest valued by the companies at more than $12 million. StatesWest’s stock is traded over-the-counter, while Royal West is privately held.

“The whole idea behind this is to give (StatesWest) a broader reach and to give Royal West a broader reach,” a Royal West spokesman said. Royal West will operate under the StatesWest name following the merger, and Royal West’s “talented management team,” including president Grant Murray, will remain, StatesWest said in a statement.

StatesWest Chairman Rudy R. Miller said the acquisition “will make StatesWest the undisputed leader in providing service from Southern California and Arizona to the major Nevada gaming markets, Las Vegas, Reno and Laughlin.”

Royal West began operating June 26 from Reno and Las Vegas to three Los Angeles-area airports: Los Angeles International Airport, Burbank and Ontario. The company, which flies three 85-passenger British Aerospace jet aircraft, said it has carried more than 80,000 passengers since then. Royal West recently announced plans for three flights a week to Vail, Colo., this winter.