U.S. AIR may have to ask the employees for more cutbacks. YGBSM

[blzr]

Anyway, here's the article.





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[url="http://ad.doubleclick.net/579320/superbar27.gif"]http://ad.doubleclick.net/579320/superbar27.gif[/url] if ((!document.images && navigator.userAgent.indexOf("Mozilla/2.") >= 0) || navigator.userAgent.indexOf("WebTV") >= 0) { document.write('');document.write('[url="http://ad.doubleclick.net/ad/reuters.com.dart/finance/quotes/article;type=SkyScraper;articleID=7042982;ptile=2;sz=120x600;seg1=135;seg1=76;seg1=87;seg1=134;seg1=138;ord=7707?"]http://ad.doubleclick.net/ad/reuters.com.dart/finance/quotes/article;type=SkyScraper;articleID=7042982;ptile=2;sz=120x600;seg1=135;seg1=76;seg1=87;seg1=134;seg1=138;ord=7707?[/url]'); }[url="http://ad.doubleclick.net/ad/reuters.com.dart/finance/quotes/article;type=SkyScraper;articleID=7042982;ptile=2;sz=120x600;seg1=135;seg1=76;seg1=87;seg1=134;seg1=138;ord=7707?"]http://ad.doubleclick.net/ad/reuters.com.dart/finance/quotes/article;type=SkyScraper;articleID=7042982;ptile=2;sz=120x600;seg1=135;seg1=76;seg1=87;seg1=134;seg1=138;ord=7707?[/url]UPDATE 1-US Airways sees more work to attract investment
Thu Dec 9, 2004 12:16 PM ET
(Adds details from court hearing)

ALEXANDRIA, Va., Dec 9 (Reuters) - US Airways (UAIRQ.OB: Quote, Profile, Research) probably will need more cost cuts or a boost in revenue to attract $250 million in equity it says it wants to exit bankruptcy next year, officials at the airline said on Thursday.

Speaking both inside and outside of a bankruptcy court hearing, the officials said US Airways' current restructuring plan, which includes an attempt to achieve nearly $1 billion in cost savings from workers, would probably be insufficient to pass muster with potential investors.

"This is a dynamic process," said Chris Chiames, senior vice president of corporate affairs, outside court. "We still have more to do."

Chiames was elaborating on testimony given by Dave Davis, the airline's former chief financial officer who left the company in November. Davis said it would "be a challenge" for US Airways to attract new capital even if it obtains all of the savings it wants from labor.

The airline has asked the bankruptcy court to throw out labor contracts for those unions that do not quickly agree to new concessions, including flight attendants and mechanics. The union representing reservations and ticket agents has tentatively agreed to givebacks, and the pilots ratified a new concession deal in October.

 

[AA717driver]

Hey, it's worked every other time they've tried it. Maybe they could start suing companies they did business with immediately prior to the filing. TC