We present a detailed analysis of a recently proposed perfectly matched layer (PML) method for the absorption of acoustic waves. The split set of equations is shown to be only weakly well-posed, and ill-posed under small low order perturbations. This analysis provides the explanation for the stability problems associated with the spilt held formulation and illustrates why applying a filter has a stabilizing effect. Utilizing recent results obtained within the context of electromagnetics, we develop strongly well-posed absorbing layers for the linearized Euler equations. The schemes are shown to be perfectly absorbing independent of frequency and angle of incidence of the wave in the case of a non-convecting mean flow. In the general case of a convecting mean flow, a number of techniques is combined to obtain absorbing layers exhibiting PML-like behavior. The efficacy of the absorbing layers is illustrated though the solution of aero-acoustic benchmark problems. (C) 1998 Academic Press.