Ted Striker
Piece of the Portfolio
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- Dec 7, 2001
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Associated Press
US Airways, Pilots Agree on New Contract
Friday October 1, 9:19 am ET
US Airways, Pilots Union Agree on New Labor Contract; Terms of Deal Not Immediately Available
ARLINGTON, Va. (AP) -- US Airways and its pilots union agreed early Friday on a new labor contract a week after the company asked a bankruptcy judge to impose pay cuts, a company official said.
Terms of the contract were not immediately available, US Airways spokesman David Castelveter said.
The management executive council of the Air Line Pilots Association is scheduled to meet at 2 p.m. Friday in Charlotte, N.C., to decide whether to send the agreement to its members for ratification, according to a message left on the union's Web site.
US Airways' failure to extract $800 million a year in cost cuts from its unions, including $295 million a year from its pilots, caused the nation's seventh-largest airline to file for bankruptcy protection Sept. 12.
US Airways Group Inc. had warned in a bankruptcy court filing earlier this week that it may have to liquidate by February if a judge does not impose a temporary 23 percent pay cut on its union workers.
Without the reductions, the airline said its cash reserves will dip so low by February that its lenders will likely withdraw the financing that has allowed the company to operate while in bankruptcy.
The airline has said it needs a cost structure in line with those at low-fare carriers such as JetBlue Airways Corp. and America West Holdings Corp. if it is to successfully compete.
US Airways employs 28,000 workers in its mainline operations and 34,000 overall. About 84 percent of its employees are covered by union labor agreements, according to the company's annual report.
The Air Line Pilots Association represents US Airways' 3,000 pilots.
www.transformingusairways.com
US Airways, Pilots Agree on New Contract
Friday October 1, 9:19 am ET
US Airways, Pilots Union Agree on New Labor Contract; Terms of Deal Not Immediately Available
ARLINGTON, Va. (AP) -- US Airways and its pilots union agreed early Friday on a new labor contract a week after the company asked a bankruptcy judge to impose pay cuts, a company official said.
Terms of the contract were not immediately available, US Airways spokesman David Castelveter said.
The management executive council of the Air Line Pilots Association is scheduled to meet at 2 p.m. Friday in Charlotte, N.C., to decide whether to send the agreement to its members for ratification, according to a message left on the union's Web site.
US Airways' failure to extract $800 million a year in cost cuts from its unions, including $295 million a year from its pilots, caused the nation's seventh-largest airline to file for bankruptcy protection Sept. 12.
US Airways Group Inc. had warned in a bankruptcy court filing earlier this week that it may have to liquidate by February if a judge does not impose a temporary 23 percent pay cut on its union workers.
Without the reductions, the airline said its cash reserves will dip so low by February that its lenders will likely withdraw the financing that has allowed the company to operate while in bankruptcy.
The airline has said it needs a cost structure in line with those at low-fare carriers such as JetBlue Airways Corp. and America West Holdings Corp. if it is to successfully compete.
US Airways employs 28,000 workers in its mainline operations and 34,000 overall. About 84 percent of its employees are covered by union labor agreements, according to the company's annual report.
The Air Line Pilots Association represents US Airways' 3,000 pilots.
www.transformingusairways.com
