America West Replaces CEO to Clear Air for Investors : Airlines: Conflict in executive suite had complicated the company’s efforts to emerge from Chapter 11 protection.

Michael Conway, one of the founders of America West Airlines, was ousted Friday as president and chief executive of the carrier after a yearlong power struggle with Chairman William Franke.

The directors of the Phoenix-based airline, which is operating under Chapter 11 bankruptcy protection, named airline executive A. Maurice Myers to replace Conway, giving Myers the titles of president and chief operating officer.

Myers, 53, had been president and chief executive of Aloha Airgroup, which operates Honolulu-based Aloha Airlines, since 1985.

Conway, 48, and Franke, 56, had been at odds since Franke, a Phoenix investment banker, was named chairman last year after raising funds to keep the carrier aloft. Since then, both men reportedly have sought to line up investment groups that would help America West emerge from bankruptcy and support their leadership.

“We had different visions of the future,” Franke said. “We needed to speak with one voice and concentrate on the future without having to retrace the mistakes of the past, the issues of the past.”

Franke said the board decided several months ago to begin searching for a new chief operating officer. While Myers will be in charge of day-to-day operations, Franke--who has no previous airline experience--said he will focus on strategic planning and completing the company’s restructuring.

Conway will remain on the airline’s board. He could not be reached for comment.

The dispute between the two executives apparently led an investment group headed by the Pritzker family of Chicago to withdraw a $150-million reorganization proposal two weeks ago. The group reportedly would have named Conway chairman.

Last week, a New York investment firm, the Steinhardt Group, said it would invest up to $250 million in the carrier in return for an 80% stake.

As part of America West’s effort to exit Chapter 11, it is seeking investors interested in taking control of the carrier. Bidders must submit proposals by Feb. 10. The airline’s board will then have 30 days to select a bid, Franke said.

“We have a number of potential bidders,” Franke said. Myers’ selection “will clear the air and permit us to energize the company.”

America West began flying in 1983 after Conway and a small group of business people raised $500,000--some of it from second mortgages and cash advances on credit cards. The airline at one point flew to Japan and was a bidder for now-defunct Pan American World Airways’ East Coast shuttle service.

But America West’s expansion proved too costly.